North River Resources has agreed separate deals intended to accelerate the development of its flagship Namib lead-zinc mine.
A drill-for-equity agreement drill-for-equity agreement has also been established a partnership with the owner of the drilling and mining contractor operating at the project, who will be paid in shares of North River rather than cash for drilling programmes.
“We are very pleased to be announcing today an investment from our local drilling partner. The decision to invest sends a strong signal to the market on the project’s potential,” said Martin French, North River Resources managing director.
The company has raised £1,025,000 through an oversubscribed placing to help fund the completion of a definitive feasibility study (DFS) for the project. The DFS is scheduled for completion during Q1 2014 and immediately thereafter North River Resources intends to submit its mining licence application to the Namibian authorities.
“Development at the Namib Project continues to be on schedule and within budget targeting the recommencement of lead, zinc and silver production in the near term. Our focus has now progressed to completion of the DFS, submission of the mining licence and raising development capital . We continue to manage our finances carefully to keep dilution to a minimum,” said French.