Namib Minerals Secures $6.5M BancABC Term Loan Facility

In Short

• Namib Minerals has secured a new US$6.5 million term loan.
• The lender is BancABC, and the loan is described as non-dilutive, meaning no new shares are issued to raise the money.
• The facility will be consolidated with Namib’s existing BancABC term loan and overdraft facilities.
• Proceeds are earmarked for Step 3 work on the Redwing Mine restart plan, including exploration drilling and making its feasibility work “bankable”.

What Happened

Namib Minerals announced it has arranged a US$6.5 million term loan facility with BancABC through Bulawayo Mining Company, its wholly owned subsidiary.

A term loan is a fixed amount borrowed for a set period, usually repaid with interest on a schedule. Namib said the new loan is in addition to its existing term loan and overdraft lines with the same bank, and the facilities will be consolidated into a single facility.

The company said the funding strengthens liquidity and working capital, which is the cash a business needs for day-to-day operations. The money is expected to partially fund Step 3 of its Redwing Mine development timelines.

Namib previously reported it completed Step 1, dewatering at Redwing Mine, ahead of schedule. Step 2, the Definitive Feasibility Study, or DFS, is underway and fully funded. A DFS is a detailed technical and financial study used to decide whether a mine can be built profitably.

Step 3 includes surface exploration drilling and advancing the DFS to full bankability. “Bankability” means the study and supporting data are detailed enough for banks and other lenders to use when deciding whether to fund construction.

Why It Matters

For listed African mining firms, non-dilutive funding can be attractive because it avoids immediate shareholder dilution while keeping projects moving. But debt also adds repayment pressure, so timelines and execution become more important.

Namib said the Step 3 budget will still require additional funding, expected to come from a sequenced, non-dilutive financing plan that it will update the market on later.