Nexa Resources Announces Sale of Otavi Project

Core Viewpoint - Nexa Resources has signed a definitive agreement to sell ten Exclusive Prospecting Licenses related to the Otavi and Namibia North projects to Midnab Resources for a total consideration of up to US$10 million, as part of its ongoing portfolio optimization strategy [1][2][3] Group 1: Transaction Details - The total consideration for the sale includes a purchase price of US$3.0 million payable at closing and additional contingent payments of up to US$7.0 million, subject to achieving certain development milestones [2] - Completion of the transaction is expected by December 31, 2025, pending customary conditions [2] Group 2: Strategic Implications - This divestment is part of Nexa's strategy to optimize its portfolio by focusing on return-generating assets and enhancing free cash flow [3] - Namibia remains a strategic region for Nexa as the company expands its copper exploration efforts beyond Latin America [3] Group 3: Company Background - Nexa Resources is a large-scale, low-cost integrated polymetallic producer, primarily focused on zinc, with over 65 years of experience in mining and smelting in Latin America [5] - The company operates four long-life underground polymetallic mines and one low-cost open pit mine, along with three smelters [5] - In 2024, Nexa was among the top five producers of mined zinc globally [6]