Himba Metals is 100% owned by the Canadian company Iron Bull Mining Inc, but is a Namibian registered company.
Aloe Investments Two Hundred and Thirty-Eight, a Namibian-registered company, owned the Okohongo exclusive prospecting licence 7071 on behalf of the Canadian company Thunder Gold.
The Okohongo Copper-Silver Project is within the Kaoko Belt that links with the Central African copperbelt deposits in Zambia and the Democratic Republic of Congo.
A 2021 mineral resource assessment estimated that Okohongo holds 7,7 million tonnes of copper.
The mines ministry renewed the exclusive prospecting licence 7071 for Okohongo in September last year for two years, with conditions that the size reduces from 19 805 hectares to 13 825 hectares.
According to the July definitive agreement, Himba Metals paid Thunder Gold a non-refundable US$50 000 and a further US$50 000 on completion of the due diligence period.
In addition, Himba also paid US$400 000 in May, and another US$500 000 was paid to Thunder Gold in October for the transfer of shares.
The amended agreement now requires Himba Metals to help Iron Bull Mining Inc, become a publicly traded company on a recognised stock exchange in Canada.
Iron Bull Mining Inc will issue Himba Metals a non-interest-bearing convertible promissory to the aggregate sum of US$1 million with a maturity date of 31 March 2023.
The promissory note can be converted to units in favour of Iron Bull Mining Inc at C$0,40 per unit consisting of one common share and one common share purchase warrant exercisable at C$1,20 for three years from the date of issuance.
A convertible promissory note is a debt instrument that converts to equity in the company that issues it when certain conditions outlined in the promissory note are met.
If Himba Metals fails to have Iron Bull listed on a recognised stock exchange by October 2023, 95% of shares will revert to Aloe Investment Two Hundred and Thirty-Eight.
The revised agreement also says Himba Metals will pay back all the taxes Thunder Gold paid to the government of Namibia, if it fails to reach commercial production or within a maximum of six months from the start of commercial production.
Thunder Gold chief executive officer Wes Hanson says Himba shared its strategic plan for Okohongo focused on establishing early cash flow from the currently defined, near-surface mineral resource, that can fund future exploration within the existing licence area.
Hanson also says Himba’s interpretation of the available geological and remote sensing data for the licence suggests excellent discovery potential to increase the overall copper resource outside the currently drill-defined, sub-surface resource area.
“This amended agreement positions Thunder Gold to participate in both the short- and long-term upside of the team and strategic plan Himba has put in motion to advance Okohongo,” Hanson says.
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