Aldoro Resources locks in drill-for-equity deal to pay for Phase 2 deep drilling at Kameelburg

• Aldoro pays for drilling at Kameelburg with shares, preserving its cash reserves
• Company snags drill rig and 11,000m program under agreement with AMW Mining
• Drilling targets deeper, high-grade core of the Kameelburg carbonatite complex

Special Report: Aldoro Resources has signed a drill-for-equity agreement with AMW Mining that enables drilling across its Kameelburg REE and Niobium Project in Namibia.

It also secures ownership of a Diamec Smart 8 fully hydraulic drill rig, giving the company in-country drilling capability that delivers significant cost and operational advantages.

Under the agreement, AMW will carry out the Phase 2 diamond drilling program of up to 11,000m and be paid with shares in Aldoro Resources (ASX:ARN) at a deemed price of 40c each, an 8% discount to the prevailing closing price for the initial phase.

Initial drilling is expected to see the issue of up to 1.5 million shares worth $600,000.

Subsequent phases, which require shareholder approval, will be paid in shares issued at a 15% discount to the 20-day volume weighted average price.

This allows the company to progress drilling at the project without having to dig deep into its cash reserves.

“The expansion of the Phase II drilling program to 20,000+ metres of diamond drilling demonstrates the confidence in our outlook for the Kameelburg niobium-REE project,” chairperson Quinn Li said. 

“The expanded program will importantly incorporate metallurgical core retrieval to allow us to undertake beneficiation and bench testing in the new year to complement our metallurgical testing program which is currently underway. 

“The drill-for-equity agreement with AMW gives Aldoro a major strategic advantage in Namibia and removes any perceived funding argument regarding our value proposition in the market. 

“It secures access to a high-performance rig and a skilled drilling partner while preserving cash and aligning incentives. 

“The drilling program at Kameelburg will target significant extensions to the high-grade rare-earth and niobium resource, positioning Aldoro as a leader in this emerging critical mineral province and laying the foundations required to move towards development.”

Phase 2 drilling

The Phase 2 metallurgical drill program comprises 11 multiple angled diamond holes that target the deeper, high-grade core of the Kameelburg carbonatite complex.

It targets both high-grade niobium as well as high-grade rare earth mineralisation.

Holes will focus on lateral extensions to known mineralisation and depth testing below prior surface sampling and geophysical anomalies.

Drilling will be completed using the recently acquired rig, which is capable of drilling holes up to 1500m deep.

Kameelburg currently has a resource of 520.61Mt at 2.49% total rare earth oxide equivalent with a core of 271Mt at 2.90% TREO-equivalent and a further 231.59Mt at 0.24% niobium.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.