Nexa Closes Otavi Project Divestment, Focuses on Core Assets

Core Insights - Nexa Resources S.A. has completed the sale of its Otavi Project in Namibia to Midnab Resources, a subsidiary of Midas Minerals, on December 22, 2025, involving the transfer of 10 Exclusive Prospecting Licenses [1][2] Group 1: Transaction Details - The sale includes a purchase price of $3 million at completion, with potential contingent milestone payments of up to $7 million, and Nexa retains royalty rights on any future project advancements [3][7] - The 10 Exclusive Prospecting Licenses represent a significant exploration land package within the Damara Belt of northern Namibia, known for its copper mineralization potential [2] Group 2: Strategic Implications - The completion of the sale aligns with Nexa's portfolio optimization strategy, focusing on higher-return assets, improving free cash flow, and maintaining disciplined capital allocation [4][7] - Despite the divestment of the Otavi licenses, Namibia remains a strategic priority for Nexa's future copper exploration as part of its long-term growth plans [4] Group 3: Market Performance - Nexa's shares have increased by 88.5% over the past six months, significantly outperforming the industry average rise of 19.6% [4]