Modern Mining September 2015

COUNTRY FOCUS – NAMIBIA

to cover the FEED phase, the ongoing develop- ment of the North decline and the exploration drive, as well as the sourcing of plant and equipment,” he states. “Our expectation is that all this work will be completed by the end of this year, clearing the way for our board to make a final investment decision on the proj- ect. This would then trigger a second debt and equity fund-raising – subject, of course, to our having received the mining licence – to cover the cost of constructing the project. “In all, we’re going to need to raise US$25 to US$30 million. This is not going to be easy given current market conditions but balanc- ing this is the fact that this is a very modest capex figure for a new mine. Also, I think there is an awareness that the commodities market is cyclical and that it’s just a question of time before prices recover at least some of the ground they’ve lost over the past year or two. Certainly we’ve been encouraged by the response we’ve had in initial discussions with potential lend- ers and I believe there is an excellent chance that we will be able to raise the money and that the project will enter construction in 2016.” Photos courtesy of North River Resources

resource base. We also have a wider exploration programme underway on the Namib property.” The Namib project does not yet have a min- ing licence but North River’s application has been with the authorities since April last year and the company is optimistic that it will soon be approved. “Our belief is that the Namibian government is very supportive of this project and indeed we recently hosted a very suc- cessful visit to the site – including a tour of the underground mine – by the new Minister of Mines and Energy in Namibia, Obeth Kandjoze, and the Governor of Erongo Region, Cleophas Mutjavikua,” says Beams. “They were accompanied by a large delegation from the Directorate of Mines. The visit formed part of a wider programme of mine visits by the Minister and we were honoured that Namib was one of the projects included in his tour.” Looking ahead, Beams says North River envisages a two-phase approach to imple- mentation of the project in terms of funding. “With the backing and participation of our big- gest shareholder, Greenstone Resources, we’re currently engaged in an equity fund-raising to cover the short term working capital required

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September 2015  MODERN MINING  41