In a significant move for the sub-Saharan gold mining industry, Namib Minerals has entered into a definitive business combination agreement with Hennessy Capital Investment Corp. VI (HCVI), a NASDAQ-listed special purpose acquisition company.
The newly formed public entity, to be named “Namib Minerals,” will list its common stock and warrants on Nasdaq under the ticker symbols “NAMM” and “NAMMW,” respectively. The merger values Namib at a pre-money enterprise value of US$500M, with an additional US$30M PubCo ordinary shares contingent on achieving key operational milestones, such as the commercial production of the Mazowe and Redwing mines.
The business combination is expected to generate approximately US$91M in net proceeds for Namib, assuming no further redemptions by HCVI’s public stockholders. Additionally, Namib anticipates securing around US$60M in funding from various financing agreements with investors prior to the closing. This influx of capital will support Namib’s operational efficiency and cash flow generation from its existing How mine, as well as its ambitious multi-asset growth strategy.
Namib’s How mine, located near Bulawayo, Zimbabwe, is a high-grade underground gold mine with a strong production history and one of the lowest production cost profiles in its peer group. The mine has consistently operated within budget and has additional identified underground resources that could extend its mine life.
Looking ahead, Namib plans to restart its previously producing Mazowe and Redwing gold mines and explore development opportunities in the Democratic Republic of the Congo (DRC) to unlock battery metals. The company has already commenced work on 13 granted exploration permits in the DRC, with initial drilling identifying promising copper and cobalt potential.
Ibrahima Tall, CEO of Namib, stated: “This business combination with HCVI marks a significant milestone for Namib. It will enable us to continue growing our business and realize the full potential of our mining asset portfolio. We are committed to creating safe, sustainable, and profitable mining operations that support local communities. This transaction aligns with our focus on sustainable growth and our goal to become a leading multi-asset producer in Africa.”
Daniel Hennessy, Chairman and CEO of HCVI, echoed Tall’s sentiments: “We are thrilled to partner with Namib, an established leader in the sub-Saharan gold mining industry. This combination will leverage our collective strengths to drive sustainable growth and create significant value for our shareholders.”
