In a strategic move set to reshape its exploration portfolio, Ubique Minerals Limited (CSE; FRA:2UM) has announced the acquisition of a majority stake in Resource 500 V Limited (R500), an Irish company with promising mineral exploration assets in Namibia. This acquisition, finalized through a Share Purchase Agreement (SPA), represents a significant milestone for Ubique as it aims to strengthen its foothold in one of the world’s most mineral-rich regions.

Ubique Minerals Limited, a junior exploration company based in Reykjavik, Iceland, has been steadily carving out its place in the global mining industry since its public listing in 2018. The company’s core focus has been the exploration and development of mineral resources, particularly zinc, through its flagship Daniel’s Harbour zinc property in Newfoundland. However, with the acquisition of R500, Ubique is now expanding its reach into the promising terrain of Namibia, Africa, a region renowned for its rich deposits of base metals and other valuable minerals.

This strategic acquisition is not just a routine expansion but a calculated effort to tap into Namibia’s prolific Otavi Mountain Land, a region with a long history of significant mineral production. The area is known for its high-grade copper, zinc, lead, and cadmium deposits, as well as other valuable minerals such as silver, germanium, and gallium. By acquiring R500, Ubique is positioning itself to take advantage of this historically productive region, enhancing its prospects for future growth and development.

Key Highlights and Advantages: Strengthening the Portfolio

The acquisition involves the purchase of up to 1,752 shares in R500, which, combined with Ubique’s existing holdings, will bring its ownership stake to at least 99.66%. This near-complete ownership of R500 gives Ubique substantial control over the company’s exploration licenses in Namibia. These licenses cover areas with geological characteristics similar to those that host some of Namibia’s most prolific base metal mines, including the historic Tsumeb and Kombat mines.

The deal is structured around three tranches of unsecured convertible debentures totaling CAD 1.5 million. These debentures, bearing a 6% annual interest rate, will mature over 36 months. Should the debentures be converted into common shares, it would result in an 11.26% increase in Ubique’s outstanding shares—a move that reflects the company’s confidence in the long-term value of this acquisition.

The R500 licenses are particularly promising. They include exploration licenses (EPLs) that span parts of the Otavi Mountain Land, an area that has yielded significant mineral wealth over the years. The licenses cover both well-explored areas and regions that have seen less historical exploration due to overlying Kalahari sands, which obscure the underlying geology. However, advances in geochemical methodology now allow for deeper penetration and better anomaly detection, offering new opportunities for discovery in these underexplored regions.

Potential Impact and Significance: A New Chapter in Namibian Exploration

For Ubique, this acquisition is more than just an expansion of its asset base—it’s a strategic move that could significantly enhance its exploration capabilities and shareholder value. Namibia’s Otavi Mountain Land has long been a focal point for base metal exploration, and with R500’s exploration licenses, Ubique is now poised to tap into this potential.

The acquisition also aligns with the company’s broader growth strategy, which involves not only expanding its exploration activities but also building a diverse portfolio of high-potential mineral assets across different geographies. The potential for discovering new, economically viable mineral deposits in Namibia could provide Ubique with the kind of transformative growth that junior mining companies strive for.

Moreover, the success of this acquisition could set the stage for further expansion in Namibia and beyond, as Ubique continues to explore opportunities in other mineral-rich regions around the world.

Expert Opinions and Analysis: Confidence in the Future

Vilhjalmur Thor Vilhjalmsson, CEO and Chairman of Ubique, expressed optimism about the acquisition, highlighting the initial positive results from the Namibian exploration venture. “We are pleased to increase our ownership to almost full in this promising Namibian exploration venture. The initial results are encouraging, and we believe this acquisition will strengthen our efforts in the region,” he stated.

Industry analysts also view the acquisition favorably, noting that it positions Ubique to benefit from Namibia’s stable mining environment and rich mineral endowment. The company’s strategic focus on areas with proven geological potential, combined with its experienced management team, bodes well for its exploration success.

Challenges and Considerations: Navigating the Path Ahead

While the acquisition of R500 offers significant upside potential, it is not without its challenges. The exploration of underexplored areas, particularly those covered by Kalahari sands, presents technical difficulties and requires substantial investment in advanced geochemical surveying techniques. Moreover, the integration of R500’s assets into Ubique’s existing portfolio will require careful management to ensure that the company’s resources are effectively allocated.

The transaction also constitutes a related-party transaction, as two of Ubique’s directors are among the sellers of R500 shares. While the company has taken steps to comply with regulatory requirements, including reliance on exemptions from the valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, it remains essential for Ubique to maintain transparency and uphold the highest standards of corporate governance as it moves forward with the acquisition.

Conclusion: A Strategic Leap Forward

Ubique Minerals Limited’s acquisition of a majority stake in R500 marks a significant step in the company’s evolution, offering the potential to unlock substantial mineral wealth in Namibia. With its strategic focus on high-potential exploration targets and a management team with a track record of successful discoveries, Ubique is well-positioned to capitalize on this new opportunity.

As the company advances its exploration activities in Namibia, investors and the broader business community will be closely watching to see how this acquisition shapes Ubique’s future growth trajectory. For now, the company’s bold move into Namibia represents a strategic leap forward—one that could redefine its place in the global mining industry.

View original press release here: https://www.accesswire.com/907793/acquisition-of-majority-share-in-namibia-exploration-company-r500