Aldoro Resources (ASX:ARN) expects to execute definitive agreements within 15 business days for Willetech International Investment to acquire a 51% interest in part of the Kameelburg Critical Minerals Project in Namibia.
The parties have signed a memorandum of understanding establishing the commercial framework for project company Kameelburg Exploration Mining (KEMPL).
In the MoU, Singapore-based Willetech proposes to subscribe for new shares to secure the majority stake across an approximate 6km² area, while the remaining project tenure will spin out into a separate entity. Aldoro’s holding will then dilute from 85% to 42%, with local shareholders retaining 7%.
Under binding terms, Willetech has deposited an initial ¥100 million ($21.4 million) into a supervised Chinese bank account, which will transfer to KEMPL upon Chinese outbound direct investment (ODI) approval.
KEMPL can also request up to ¥200 million ($42.9 million) for pre-development expenditure. Aldoro will be reimbursed for roughly $10 million in historical expenditure, and existing owners retain board-level reserved-matter approval rights.
Willetech also proposes to procure at least ¥2 billion in development funding staged through to commercial production.
Executive Chair Quinn Li says this MoU represents “one of the most important milestones in Aldoro’s transition from an exploration company towards a global critical minerals developer”.
“Willetech brings a combination of capabilities that is unusually well-matched to Kameelburg – German materials technology and [research and development], Singapore’s global trade and capital platform, and China’s established manufacturing capability and downstream industrial connections,” Li says.
“This is not simply a funding partnership; it creates the potential for Kameelburg to extend from mineral resources into product development, customer qualification, offtake, and higher-value downstream applications.”
The parties also plan to pursue a listing on the Stock Exchange of Hong Kong.
The transaction remains subject to due diligence, definitive documentation, Namibian and Chinese regulatory approvals, and Aldoro shareholder approval under ASX listing rule 11.4.1(b). If Willetech defaults following share issuance, existing shareholders must buy back the stake, with Aldoro held jointly and severally liable.
Kameelburg hosts an inferred and indicated mineral resource estimate of 804.5 million tonnes (Mt) at 2.90% total rare earth oxide equivalent, comprising 162.1Mt in the indicated category and 642.4Mt inferred.
The deposit contains approximately 1.37Mt of neodymium-praseodymium oxides and 3.54% strontium carbonate.
Aldoro Resources is a critical minerals explorer and developer with projects in Australia and Namibia.
Write to Paula Fabe at Mining.com.au
Main image: Aldoro Resources
