Appian signals intent to acquire Omitiomire project

UK-based private equity group Appian Capital Advisory is set to take control of Namibia’s Omitiomire Copper

Project through the acquisition of shares in Craton Mining and Exploration, marking a new phase for the

undeveloped 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 Omitiomire

project.

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 Copper

Project, located in the Otjozondjupa Region, approximately 140 kilometres northeast of

Windhoek.

The company currently holds the project’s mining licence (ML 197) and exploration licence (EPL

8550), with the asset remaining at a preproduction stage. The Omitiomire Copper

Project has been known from historical exploration work in central Namibia and was previously

advanced by International Lithium Corp before being incorporated into its current ownership

structure.

At present, the project is held through a layered structure led by Omico Mining Corp Ltd and

Omico Copper Ltd, which together control a 95% interest in Craton. The remaining 5% is

held through the Craton Foundation Trust, a Namibian community trust.

At the top of the ownership chain, the project is backed by Greenstone Resources

II LP, which holds a 53.7% interest, and International Base Metals Limited, which holds the

remaining 46.3%. The project’s history stretches back several decades. Initial

exploration work was carried out in the 1970s by General Mining and Finance Corporation,

followed by further drilling and geophysical surveys in the 1990s, led

by Anglo American.

Subsequent exploration by companies including Kalahari Gold & Copper and Straits Resources

expanded the geological understanding of the deposit, with drilling intersections confirming

significant copper mineralisation, including 106 metres at 0.47% copper.

In 2008, International Base Metals Limited acquired Craton and undertook extensive

drilling and metallurgical work, including more than 85,000 metres of drilling and early-stage

processing studies. However, initial development concepts based on conventional

milling and flotation were not considered economically viable at the time, and the project

remained largely inactive for several years.

A turning point came in 2019, when Greenstone Resources II LP invested in the project and shifted

the 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 processing

route, 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-year

open-pit operation producing copper cathode. The study reported an after-tax net present

value of US$224 million at a copper price of US$4.50 per pound, an internal rate of return

of 18%, and a payback period of 3.7 years initial expenditure was estimated at approximately US$364

million, with life-of-mine production of about 382,000 tonnes of copper cathode, averaging roughly

26,800 tonnes per year and peaking at 32,000 tonnes annually in the

early years of operation.

The study also projected life-of-mine revenue of around US$3.8 billion and free cash flow of

approximately 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 Metals

Limited has indicated that the initial phase of development could require about US$40 million for construction

and 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 or

hedging, with potential financiers including commercial banks, commodity traders, Chinese relationship

banks, development finance institutions and resource-focused funds.

Craton holds the Omitiomire Copper Project in Namibia’s prospective Damara Belt, a geological formation

known for hosting several base-metal deposits. The project is characterised by sediment-hosted

copper mineralisation, with copper occurring in both oxide and sulphide forms across multiple

zones.

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. Environmental

clearance 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 well

as 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 energy

infrastructure and global industrial supply chains. The merging parties have defined the

relevant market as the production and sale of copper concentrates in Namibia, signalling that

the transaction is aimed at positioning the group within the country’s future copper production

pipeline rather than current output.

Omitiomire remains in development, meaning the acquisition is a forward-looking investment rather than

an immediate production play. The project has been under evaluation for several years, with

progress dependent on securing funding, advancing technical studies and aligning

development timelines with market conditions.