Noronex divests non-core play to fuel uranium-copper push

Noronex Limited has completed the divestment of its non-core Dordabis copper project in Namibia, securing $440,000 cash to streamline its flagship uranium and copper projects in Central Africa.

With the sale now fully settled, the company is pressing ahead with exploration across its remaining projects in Namibia and the Kalahari Copper Belt.

Notably, the Dordabis licence represented just two per cent of Noronex’s total Namibian tenure, making it a logical candidate for divestment as the company sharpens its focus on more prospective and large-scale opportunities.

“The decision by our JV partner, Larchmont Holdings, to receive its allocation as 50% cash and 50% shares in Noronex is a testament to its belief in the value of the Company’s broader tenement package, while further bolstering our cash balance.” Noronex Limited managing director and chief executive officer Victor Rajasooriar

The sale allows management to redirect both capital and attention towards its primary assets. These include its promising Etango North uranium project and its suite of copper prospects being explored through a strategic alliance with mining heavyweight South32.

The company’s Etango North project is in one of the planet’s hottest uranium belts, just kilometres along strike from Bannerman Energy’s monster 207-million-pound Etango deposit.

The premium neighbourhood also features the world-class Rössing and Husab uranium mines, making the region extremely hot property in uranium circles.

Elsewhere, the company’s copper exploration continues at pace through its earn-in arrangements with South32.

The global miner is funding exploration at Noronex’s Humpback, Damara and Powerline projects in Namibia, in addition to its Cgae Cgae copper-silver project across the border in Botswana.

Under the terms of the deal, South32 can earn a 60 per cent interest in the projects by funding a combined $4 million in exploration per year for up to five years, with Noronex managing all exploration activities.

The Kalahari Copper Belt is no slouch on the global mining stage either, hosting behemoths such as China Minmetals’ Khoemacau copper-silver mine, with three million tonnes of contained copper and 130 million ounces of silver and the Motheo project operated by Sandfire Resources, with around 600,000 tonnes of contained copper.

With its portfolio streamlined and extra cash in the kitty, Noronex looks well placed to press ahead with a large-scale discovery push across its vast Central African ground.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au