Weatherly International Plc entered a binding agreement to increase its ownership in China Africa Resources Namibia Ltd. to 90% from 25%.
CARN owns a 100% interest in the Berg Aukas underground zinc-lead-vanadium project in Namibia, according to a Feb. 5 release.
The company will pay US$600,000 to acquire the 65% stake in the project held by Hong Kong East China Non-Ferrous Mineral Resources Co. Ltd.
Weatherly will fund the deal through operating cash flow or the uncommitted US$10 million loan from Orion Mine Finance.
Meanwhile, the company has kicked off work to update the 2014 pre-feasibility study for the project based on the improved prices for zinc and lead since the original study.
Weatherly added that it does not expect to generate enough cash to meet loan repayment obligations, particularly in the near-term, and is in talks with Orion Mine Finance over the matter.
