Namibian Copper fresh from a maiden 270 million pounds copper JORC resource at Ongombo announced last week has agreed to acquire the Hambok copper and zinc project in Eritrea.

Namibian will acquire the project via a wholly owned subsidiary of NGEx Resources of Canada for a consideration of 50 million ordinary shares and a later payment of USD 7.5 million.

The Hambok project is no early stage project and has a near surface resource containing JORC Resource estimate including 550 million pounds of copper and 1.2 billion pounds of zinc.

It is located just 15 kilometers from Nevsun Resources' newly operating Bisha mine which itself produced over 370,000 ounces of gold in the first year. Upon completion of the Transaction, NGEx will be the largest single shareholder of Namibian Copper with approximately 40% of Namibian copper.

This looks to be a very useful and significant deal for Namibian Copper as it will add significant copper resources to its current resource base as well as add zinc to its mineral arsenal.

Zinc has been in the news of late given market demand and supply dynamics. Infill drilling at Hambok will look to upgrade the resource by better definition of the higher grade core.

(Sourced from www.proactiveinvestors.com.au)