Unicorn Mineral Resources to acquire 75% stake in QGC Namibia

Unicorn Mineral Resources Forges Path to Near-Term Copper Production in Namibia's Kalahari Copperbelt

In a significant strategic maneuver poised to transform its business profile, Unicorn Mineral Resources announced on September 16, 2026, the signing of a Share Purchase Agreement (SPA) to acquire a 75% stake in Q Global Copper Namibia (QGC Namibia). This acquisition represents a pivotal moment for Unicorn, marking its definitive transition from a purely exploration-focused entity to one with potential near-term copper production capabilities. The centerpiece of this transaction is the inclusion of the historic Klein Aub Copper Mine, located within two exclusive prospecting licenses (EPLs) in the renowned Kalahari Copperbelt.

A Strategic Inflection Point in the Kalahari Copperbelt

The core of this transformative deal lies in the assets held by QGC Namibia: the EPL5851 and EPL7958 licenses. These licenses collectively span an impressive 6,536 hectares (ha) within the highly prospective Kalahari Copperbelt in Namibia. Crucially, they encompass the Klein Aub Copper Mine, a site with a rich operational history, alongside associated surface resources and significant opportunities for further exploration. For Unicorn Mineral Resources, this acquisition is not merely an expansion of its asset base but a fundamental shift in its operational strategy, aiming to leverage existing resources for a faster pathway to revenue generation.

The Kalahari Copperbelt itself is a region that has increasingly captured the attention of major international mining conglomerates. Its geological endowment makes it a prime target for copper exploration and development, a fact underscored by recent significant transactions involving industry heavyweights such as MMG, Sandfire Resources, and Rio Tinto. Unicorn’s entry into this strategically important region via the Klein Aub acquisition provides it with a robust platform for potential growth and expansion across southern Africa, tapping into a mineral-rich belt known for its world-class copper deposits. The region's appeal is further amplified by the global demand for copper, driven by the accelerating energy transition and the proliferation of electric vehicles, making a well-positioned asset in this belt exceptionally valuable.

The Klein Aub Copper Mine: A Legacy Asset with Immediate Resource Potential

The Klein Aub Copper Mine is not a greenfield discovery; it boasts a substantial operational past, having previously produced more than 5.5 million tonnes (mt) of ore at an impressive average grade of 2% copper and 50 grams per tonne (g/t) of silver. This historical performance provides a strong indication of the deposit's underlying geological potential and continuity.

A significant aspect of Unicorn's acquisition strategy revolves around the project's existing surface resources. The project area contains:

• Historical Surface Tailings: An estimated 5.5 million tonnes (mt) of historical surface tailings. In-house estimates from Unicorn indicate these tailings contain an average of 0.24% copper and 7.4 g/t of silver.
• High-Grade Slimes: Approximately 100,000 tonnes (t) of high-grade slimes. These slimes are estimated to hold significantly higher grades, averaging 1.34% copper and 33.55 g/t of silver.

Access to these readily available surface materials offers Unicorn a compelling advantage. By bypassing the time-consuming and capital-intensive stages of initial deep-mine development and extensive greenfield exploration, the company anticipates a reduced processing timeline and lower initial investment requirements compared to developing an entirely new mine. This strategy is particularly attractive in the current commodity market, where speed to production can significantly enhance project economics and shareholder value.

Leveraging Existing Infrastructure for Accelerated Development

One of the key factors underpinning the attractiveness of the Klein Aub project is the presence of established infrastructure. Mining projects often face substantial upfront capital expenditure for developing essential infrastructure, which can be a significant barrier to entry or a drag on project timelines. At Klein Aub, Unicorn will benefit from:

• Site Access: Existing road networks facilitate easy access to the mine site.
• Electrical Substation: A nearby electrical substation provides a crucial and cost-effective power supply, mitigating the need for extensive new power infrastructure.
• Water Supply: Historic underground mine shafts offer a readily available water supply, a critical resource for processing operations in arid regions.

This pre-existing infrastructure significantly de-risks the project and shortens the path to operational readiness. It allows Unicorn to focus resources on processing and potential resource expansion rather than on fundamental site development, aligning perfectly with the company's stated goal of rapid business transformation.

Financial Details and Funding Mechanism

Under the terms of the Share Purchase Agreement, Unicorn's initial consideration for the 75% stake totals $368,637 (equivalent to R6 million). The payment structure is designed to be flexible, balancing immediate obligations with deferred considerations:

• Completion Payment: R2 million will be paid on completion of the acquisition, split between cash and Unicorn shares.
• Deferred Loan Notes: An additional R4 million will be satisfied through deferred loan notes.

Beyond the initial consideration, the agreement also includes provisions for additional deferred consideration and a payment specifically for exploration data, with these elements also to be satisfied through a combination of cash and shares.

The funding for this strategic acquisition is already secured through a previously announced $1.68 million (£1.25 million) unsecured loan facility. This facility is being provided by Electro Automation (Group), ensuring that Unicorn has the necessary financial resources to complete the transaction and commence initial project activities without immediate dilution from equity raises, underscoring careful financial planning for this significant venture.

Executive Vision: A Transformative Opportunity

Unicorn Chairman Paddy Doherty articulated the profound significance of this acquisition for the company’s trajectory. "The acquisition of the Klein Aub Copper Mine represents a strategic inflection point for Unicorn," Doherty stated. This sentiment highlights the culmination of a focused effort by Unicorn's board and executive team to identify and secure high-impact assets that could rapidly reshape the company’s operational and financial profile.

Doherty emphasized that the Klein Aub project meets several critical metrics that align with Unicorn’s strategic objectives:

• Low Capital Expenditure: The focus on surface resource processing leverages existing materials, reducing the need for substantial initial capital outlay.
• Strong Grade: The estimated grades for both tailings (0.24% Cu, 7.4 g/t Ag) and particularly the high-grade slimes (1.34% Cu, 33.55 g/t Ag) present attractive processing economics.
• Established Infrastructure: The presence of site access, an electrical substation, and a water supply from historic shafts minimizes development costs and accelerates project timelines.
• Massive Resource Expansion Potential: The expansive 6,536 hectares covered by the EPLs, coupled with the historical production and known geology, suggest significant potential for discovering additional resources along strike.

This comprehensive alignment of project attributes with Unicorn’s strategic goals positions the company for a potentially swift and impactful entry into the copper production landscape.

Market Context and Broader Industry Implications

Unicorn’s move into the Kalahari Copperbelt reflects a broader industry trend of increasing investment in critical minerals, particularly copper, which is indispensable for the global transition to renewable energy and electric vehicles. The region’s reputation, solidified by the presence and transactions of major players, underscores its geological prospectivity and favorable mining jurisdiction in Namibia.

For the mining industry, this acquisition highlights several key trends:

• Focus on Near-Term Production: The emphasis on surface resources and existing infrastructure demonstrates a growing appetite for projects that can generate cash flow relatively quickly, reducing the long lead times often associated with greenfield discoveries.
• Value in Legacy Assets: The re-evaluation of historical mines and their associated waste dumps (tailings, slimes) as viable, lower-cost sources of minerals is gaining traction, especially with advancements in processing technologies that can economically extract metals from lower-grade materials.
• Strategic M&A: Smaller to mid-tier companies are actively pursuing strategic acquisitions to scale operations, diversify portfolios, and capitalize on specific commodity cycles, often targeting proven mining districts.

By acquiring a significant stake in a project with immediate processing potential and substantial exploration upside in a premier copper belt, Unicorn is not only advancing its own corporate objectives but also contributing to the ongoing narrative of resource development crucial for global industrial needs.

Future Outlook and Next Steps

Following the completion of the acquisition, Unicorn Mineral Resources is expected to prioritize the systematic processing of the historical surface tailings and high-grade slimes at the Klein Aub site. This will likely involve detailed metallurgical test work to optimize recovery processes and then the construction or refurbishment of processing facilities. The established infrastructure, including power and water, will be instrumental in expediting these initial operational phases.

Concurrently, the company will undoubtedly embark on comprehensive exploration programs across the extensive 6,536 hectares covered by EPL5851 and EPL7958. Given Chairman Doherty’s mention of "massive resource expansion potential along strike," these efforts will likely focus on delineating extensions of the known Klein Aub mineralization and identifying new targets within the highly prospective geological setting.

The successful development of Klein Aub could firmly establish Unicorn Mineral Resources as a significant copper player in the Kalahari Copperbelt, potentially attracting further investment and partnership opportunities. This strategic acquisition sets the stage for Unicorn to capitalize on both the immediate value locked in surface resources and the long-term potential of a historically productive and underexplored regional land package, ultimately contributing to the global copper supply chain and reinforcing Namibia's position as a key mining jurisdiction.