Description of Activities

Description of transaction: The Commission resolved to approve without conditions the acquisition by Midnab Resources (Proprietary) Limited of the entire issued share capital in Otjitombo Mining (Proprietary) Limited.

Acquiring undertaking: The primary acquiring undertaking is Midnab Resources (Proprietary) Limited, a private company incorporated in terms of the laws of the Republic of Namibia. The acquiring group is engaged in early-stage exploration for various minerals, including gold, lithium, platinum, palladium, and copper in Western Australia, as well as lithium in Ontario and the Northwest Territories. It also holds a stake in the inactive Gravenhage manganese project in South Africa. In Namibia, the acquiring group holds a majority participating interest in an Exclusive Prospecting Licence (EPL) EPL8374, for gold and copper exploration.

Target undertaking: The primary target undertaking is Otjitombo Mining (Proprietary) Limited, a private company incorporated in terms of the laws of the Republic of Namibia. The target undertaking is involved in prospecting activities for base and rare metals with mineral licences located within the Kunene and Otjozondjupa regions, which include EPLs 7213, 7402, and 7789 and EPLs 5402 and 6927. 

Relevant market: Defined the relevant market to be the market for the prospecting activities for base and rare metals in Namibia.

Merger Determination

The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition or result in any undertaking to acquire or strengthen a dominant position in the market and did not raise any public interest concerns.

However, as stated under section 50 of the Act, this approval does not relieve parties from complying with any other mandatory statutory approvals that any of the parties to this merger must comply with under Namibian laws.