Home Business Namibia seeks $155m for gold mining expansion

Namibia seeks $155m for gold mining expansion

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KARIBIB, 12 July 2012 - The Navachab Gold Mine outside Karibib where a looming strike threatens to halt operations. (Photo by: Charles Tjatindi) NAMPA

Namibia’s second largest gold mine, QKR Navachab, has entrusted a corporate and investment bank based in South Africa, Rand Merchant Bank (RMB), to orchestrate a syndicated loan agreement with banks from Namibia and South Africa.

   The loan, tailored to QKR Navachab’s needs, amounts to a term funding of 155 million U.S dollars, for the expansion of the mine, the bank announced in a statement Tuesday.

   The multifaceted solution is crucial for the critical ramp-up of the mining and processing activities.

   “This deal stands out as one of the largest resource transactions structured and executed by a Namibian financial institution. It underscores RMB’s ability to deliver complex, market-leading solutions bringing together stakeholders from across the financial ecosystem,” said Jason Shikalepo, head of Investment Banking at RMB in Namibia.

   Shikalepo further said by participating in such opportunities, RMB demonstrates its commitment to developing Namibia’s capital markets and fostering shared prosperity for clients and the communities in which they operate.

   Meanwhile, the mine’s expansion is set to significantly scale up gold output, substantially contributing to Namibia’s economic sustainability.

   Further to the funding, RMB and the banking syndicate will provide risk management solutions to optimize the mine’s exposure to commodity prices, currency, and major operating expenses.

   Situated near Karibib, in the Erongo Region of Namibia, the Navachab Gold Mine, owned by QKR, is the oldest in the country. 

XINHUA

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