NGX secures exploration rights and raises $3.6M
Key points
- NGX secured rights to acquire up to an 85% interest in seven mineral licences in Namibia covering over 1,300km2.
- The company raised $3.6 million through a share placement to institutional and sophisticated investors to fund its exploration work.
- NGX plans to evaluate drill results from its projects in Malawi while advancing initial ground efforts across its new African tenure.
NGX (ASX:NGX) secured rights to acquire up to an 85% interest in seven exclusive prospecting licences in Namibia covering over 1,300km2.
The new land package expands the exploration footprint of NGX into the Damara Gold Belt near existing gold deposits held by WIA Gold (ASX:WIA) and Ongwe Minerals.
The company stated that the transaction provides direct access to high-priority mineral targets within a major regional gold belt.
Alongside the Namibian rights, NGX completed a hand-auger drilling programme at the Msinja and Lifidzi prospects in Malawi, returning shallow rutile hits, including 2 metres at 1% rutile.
Following the announcement, the NGX share price was unchanged at $0.12.
To finance further exploration, NGX completed a bookbuild for an equity placement raising $3.6 million, with company directors intending to contribute $540,000 subject to shareholder approval.
In addition to gold tenure in Namibia, NGX secured rights for up to an 85% interest in the Karas Copper Project, a 194km2 licence adjacent to Koryx Copper's Haib deposit.
