Aldoro Resources Ltd (ASX: ARN), a mineral exploration and development company with a portfolio of critical minerals projects, has announced it has secured funding to expand its Phase II drilling program at the Kameelburg REE-Niobium Project in Namibia. The company has entered into a drill-for-equity agreement with AMW Mining Pte Ltd (AMW), which includes the acquisition of a Diamec Smart 8 drilling rig. The agreement allows Aldoro to significantly expand drilling activities while preserving cash reserves.
The expanded Phase II drilling program will incorporate an additional 11,000 metres of appraisal and metallurgical diamond drilling across the Kameelburg site. The program will focus on resource expansion, metallurgical bulk sampling for beneficiation, bench-testing, pilot scale optimisation testing, and JORC resource upgrade preparation. A key component of the agreement is the acquisition of a Diamec Smart 8 rig, valued at A$1.5 million, which will be settled through the issue of 3.75 million Aldoro shares, subject to shareholder approval.
The drill-for-equity mechanism allows Aldoro to fund drilling partly through share issuance, with an initial equity component of up to 1.5 million shares at $0.40 per share, valued at A$0.6 million. Subsequent phases will offer payment options in shares issued at a 15% discount to the 20-day VWAP, also subject to shareholder approval. AMW will also provide drilling services at 50% below Namibian market rates, without mobilisation, standby, or demobilisation costs.
Aldoro Chairperson Quinn Li stated that the agreement gives Aldoro a major strategic advantage in Namibia and removes any perceived funding argument regarding the company’s value proposition. The drilling program will target significant extensions to the high-grade rare-earth and niobium resource, positioning Aldoro as a leader in this emerging critical mineral province and laying the foundations required to move towards development.
