Appian signals intent to acquire Omitiomire project

UK-based private equity group Appian Capital Advisory is set to take control of Namibia’s Omitiomire CopperProject through the acquisition of shares in Craton Mining and Exploration, marking a new phase for theundeveloped asset.The transaction will see Appian Omega Bidco Limited, a UK incorporated entity within the Appian group, acquire shares in Craton Mining and Exploration, the company established to develop the Omitiomireproject.Following the deal, Appian Bidco will assume direct control of Craton. Craton Mining and Exploration (Pty) Ltd is a Namibian-registered company specifically established to advance the Omitiomire CopperProject, located in the Otjozondjupa Region, approximately 140 kilometres northeast ofWindhoek.The company currently holds the project’s mining licence (ML 197) and exploration licence (EPL8550), with the asset remaining at a preproduction stage. The Omitiomire CopperProject has been known from historical exploration work in central Namibia and was previouslyadvanced by International Lithium Corp before being incorporated into its current ownershipstructure.At present, the project is held through a layered structure led by Omico Mining Corp Ltd andOmico Copper Ltd, which together control a 95% interest in Craton. The remaining 5% isheld through the Craton Foundation Trust, a Namibian community trust.At the top of the ownership chain, the project is backed by Greenstone ResourcesII LP, which holds a 53.7% interest, and International Base Metals Limited, which holds theremaining 46.3%. The project’s history stretches back several decades. Initialexploration work was carried out in the 1970s by General Mining and Finance Corporation,followed by further drilling and geophysical surveys in the 1990s, ledby Anglo American.Subsequent exploration by companies including Kalahari Gold &amp; Copper and Straits Resourcesexpanded the geological understanding of the deposit, with drilling intersections confirmingsignificant copper mineralisation, including 106 metres at 0.47% copper.In 2008, International Base Metals Limited acquired Craton and undertook extensivedrilling and metallurgical work, including more than 85,000 metres of drilling and early-stageprocessing studies. However, initial development concepts based on conventionalmilling and flotation were not considered economically viable at the time, and the projectremained largely inactive for several years.A turning point came in 2019, when Greenstone Resources II LP invested in the project and shiftedthe development strategy toward a lower-capital-intensity model. This included identifying chloride heap leaching with solvent extraction and electrowinning (SX-EW) as a more viable processingroute, supported by an extensive multi-phase metallurgical test work programme.A 2024 bankable feasibility study confirmed the impact of this revised approach, outlining a 15-yearopen-pit operation producing copper cathode. The study reported an after-tax net presentvalue of US$224 million at a copper price of US$4.50 per pound, an internal rate of returnof 18%, and a payback period of 3.7 years initial expenditure was estimated at approximately US$364million, with life-of-mine production of about 382,000 tonnes of copper cathode, averaging roughly26,800 tonnes per year and peaking at 32,000 tonnes annually in theearly years of operation.The study also projected life-of-mine revenue of around US$3.8 billion and free cash flow ofapproximately US$644 million, supported by low acid consumption and relatively short leach cycles, key factors that improved project economics.Funding remains a key consideration as the project advances. International Base MetalsLimited has indicated that the initial phase of development could require about US$40 million for constructionand stripping, likely to be financed through a mix of equity and debt.The company noted that funding structures may include offtake agreements, parent company guarantees orhedging, with potential financiers including commercial banks, commodity traders, Chinese relationshipbanks, development finance institutions and resource-focused funds.Craton holds the Omitiomire Copper Project in Namibia’s prospective Damara Belt, a geological formationknown for hosting several base-metal deposits. The project is characterised by sediment-hostedcopper mineralisation, with copper occurring in both oxide and sulphide forms across multiplezones.The project’s proximity to Windhoek provides logistical advantages, although further work is required to define water supply, power access and transport solutions for future operations. Environmentalclearance certificates for exploration are valid until September 2025, while an application for approval to construct and operate the mine was submitted in April 2024.The acquiring group, through Appian, already has an established footprint in Namibia. It controls Rosh Pinah Zinc Corporation, which owns and operates the Rosh Pinah lead-zinc mine in the Karas Region, as wellas the Rosh Pinah Solar Park, which supplies renewable power to the mining operation.The move consolidates Appian’s position in Namibia’s mining sector, expanding its exposure from zinc into copper at a time when the metal is increasingly viewed as critical to electrification, renewable energyinfrastructure and global industrial supply chains. The merging parties have defined therelevant market as the production and sale of copper concentrates in Namibia, signalling thatthe transaction is aimed at positioning the group within the country’s future copper productionpipeline rather than current output.Omitiomire remains in development, meaning the acquisition is a forward-looking investment rather thanan immediate production play. The project has been under evaluation for several years, withprogress dependent on securing funding, advancing technical studies and aligningdevelopment timelines with market conditions.

Appian signals intent to acquire Omitiomire project

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Namibian Sun 2026-04-02

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Appian signals intent to acquire Omitiomire project

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Namibian Sun 2026-04-02

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