Core Viewpoint - Namib Minerals is entering a business combination with Hennessy Capital Investment Corp. VI (HCVI), aiming to enhance its growth and operational capacity in the gold mining sector, particularly in Zimbabwe and the Democratic Republic of the Congo (DRC) [21][14][9]. Group 1: Company Overview - Namib Minerals is an established gold producer in Africa, with a portfolio of high-grade, low-cost mines in Zimbabwe, including the How mine, which is currently generating cash flow [1][2]. - The company plans to restart two historically producing gold mines, Mazowe and Redwing, and expand its mining capacity [1][22]. - Namib operates using conventional mining methods and is exploring opportunities in battery metals in the DRC, with ongoing exploration across 13 permits [17][22]. Group 2: Proposed Business Combination - The proposed transaction values Namib at a pre-money enterprise value of $500 million, with potential additional shares tied to operational milestones [1][14]. - The business combination is expected to close in the fourth quarter of 2024, subject to regulatory and stockholder approvals [21][23]. - Namib's existing shareholders will convert their equity stakes into the combined company, retaining approximately 71% ownership post-combination [9][14]. Group 3: Financial Aspects - The transaction is expected to deliver net proceeds of approximately $91 million, assuming no further redemptions by HCVI's public stockholders, along with an additional $60 million from financing agreements [14][23]. - The combined entity will have a pro forma enterprise value of $609 million, excluding additional earnout considerations [23]. Group 4: Management and Strategic Goals - Ibrahima Tall, CEO of Namib, emphasized the significance of this business combination for growth and sustainable mining operations [8]. - The management team is committed to unlocking value for shareholders and aims to operate as a multi-asset producer in Africa [8][22].
Namib Minerals, an Established African Gold Producer, to Become Publicly Traded Through Business Combination With Hennessy Capital Investment Corp. VI