QKR secures N$2.9 billion for Navachab expansion

RMB has been appointed by QKR Navachab as the initial mandated lead arranger, underwriter and coordinator of a syndicated loan from Namibian and South African banks. The loan providing bespoke term funding, worth US$155 million or about N$2.9 billion, is earmarked for the mine’s recently announced expansion programme.

The funding will prove crucial for the critical ramp-up of the mining and processing activities. This expansion will significantly scale up the mine’s gold output, making a substantial contribution to Namibia’s economic sustainability. In addition to the funding, RMB and the banking syndicate will provide risk management solutions to optimise the mine’s exposure to commodity prices, currency and major operating expenses.

Jason Shikalepo, head of investment banking at RMB Namibia, said the deal underscored RMB's ability to deliver tailor-made solutions to its stakeholders in Namibia.

“This deal stands out as one of the largest resource transactions structured and executed by a Namibian financial institution. It underscores RMB’s ability to deliver complex, market-leading solutions, bringing together stakeholders from across the financial ecosystem. By participating in such opportunities, RMB demonstrates its commitment to develop Namibia's capital markets and fostering shared prosperity for our clients and the communities in which they operate."

According to him, the transaction reinforces RMB’s long-standing relationship with QKR Navachab. "The comprehensive solution exemplifies the corporate investment bank’s unique ability to address client needs by leveraging expertise across several business units."

QKR Navachab in 2021 embarked on the Project Khaima initiative to transition towards underground mining in addition to its open-pit operation in line with its mine expansion strategy.

“Project Khaima enabled the mine to turnaround the unsustainable cost base which faced us in 2018 to a sustainable cash-flow position, which has made the company self-funding and has enabled investment into expansion projects which are critical to the sustainability of the mine, ” QKR Namibia managing director George Botshiwe said at the time.

Navachab is primarily owned by QKR Namibia Mineral Holdings and JG Investment Investments, with a 92.5% stake, while state-owned EpangeloGold possesses the remaining 7.5%.