Kombat up for sale
Kombat Copper Incorporated recently announced that it would divest from the town of Kombat as well as five of its non-core exploration prospecting licenses in the Otavi Region.
Its holding company, Grove and related infrastructure will be sold to an unnamed Namibian group.
The divestment will allow Kombat Copper to turn the tide on the idle copper mine as part of its motivation to rationalise their holdings, according to Chief Executive Officer, Bill Nielson.
“We continue to sharpen our focus on the goal of getting the Kombat mine back into production, and in doing so we have made some important and strategic decisions about the assets of Kombat Copper” he said.
Kombat Copper’s involvement in the affairs of running the Kombat settlement, situated a stone’s throw from Otavi, has become costly.
“Our divestment of the town of Kombat was an important move that will allow us to offload a number of expenses associated with running the town while also ensuring that it is properly maintained as we will come to rely on this important infrastructure following any production decision,” said Nielson.
Kombat has also decided to divest all involvement with its five exploration prospecting licences located in the surrounding Otavi Mountain region through the sale of its interest in Congo Namibia, according to Nielson.
Congo Namibia is the holding company for the five exploratory licences held in the Otavi Mountainlands.
Said Nielson, “Kombat Copper made the decision to cease its involvement in these exploratory prospecting licenses so that we can put our entire focus and efforts into the [formerly] producing Kombat mine.”
Kombat Copper will however continue to maintain its five mining licences which comprise the historic Kombat mine, the Gross Otavi mine and the Harasib mine.
Nielson continued, “We have also made the decision to move away from exploring on our exploration prospecting licenses so that we can effectively manage our resources to support our production goals.
A water off-take agreement is currently negotiated with the Namibia Water Corporation (Namwater) to significantly increase the off-take of water from the mine workings, specifically at the number 1 shaft area. A local Namwater engineer who was a former employee of Kombat mine, is also in the process of formulating a cost analysis and schedule to be presented to the relevant Namibian authorities.
Subsequent meetings are scheduled for the near future and Kombat Copper will report on these proceedings as they progress, Nielson explained.
“Kombat Copper hopes to benefit from any agreement by having the mine de-watered at little to no cost which is a great advancement of the long-term plan for getting the mine back into production,” said an optimistic Nielson.
Kombat Copper also recently announced the commencement of a new drilling programme at the Kombat mine.