GreenBank Capital Inc (CSE:GBC), the investment group, has reported that Ubique Minerals Limited, in which it holds around a 19% stake, is to acquire 90% of the shares in Namib Lead and Zinc Mining (Proprietary) Limited (NLZM).
The latter company holds the Ubique Namibia project, a lead-zinc mine near Swakopmund in the South African country that was built in 2018-2019 and operated until April, 2020, when it was put on care and maintenance in a 'ready-to-restart' status.
GreenBank noted that at the time of writing, the total number of Ubique Minerals shares it holds is 14,311,039, or around 19% of the firm, valuing its holding at C$2,146,655.85 using a share price of C$0.15 as at the close of trading on September 14 this year.
"This announcement from Ubique Minerals highlights the growth opportunity of the business, and we feel that this is just the beginning of their expansion into the wider mining sector," said Terry Pullen, the CEO of GreenBank, in a statement.
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"It has been a personal privilege to develop a strong working relationship with Ubique's CEO, Villi, and we are increasingly excited at Greenbank at the prospect of seeing developments like this come to fruition, which we hope will have a positive effect on shareholder value."
GreenBank Captal invested C$200,000 for 4 million additional shares in the Ubique fundraising in July last year and thus, has 4 million warrants available to exercise at C$0.075.
If the warrants were to be exercised and the resulting shares disposed of at the September 14 share price, that would yield a 100% return on the aggregate exercise cost of C$300,000, noted the company.
Since June this year, Ubique has undertaken extensive due-diligence at the project, including site visits, obtained third-party opinion reports, and conducted workshops with the management team, to validate NLZM's business plan.
Vilhjalmur Vilhjalmsson, CEO of Ubique Minerals, added: "Ubique is the Latin word for 'everywhere.' The completion of this acquisition indicates a positive move towards a future with Ubique Minerals as a global mining presence. I have enjoyed working with Terry and the team at Greenbank so far and look forward to the coming months at Ubique, with the Namibia project at the forefront of our mission."
The closing of the transaction is subject to the parties obtaining the necessary regulatory approvals, as well as the approval of the shareholders of Ubique.
GreenBank invests in multi-sector undervalued public and private growth companies focused on building consistent capital appreciation for its shareholders.
Contact the writer at giles@proactiveinvestors.com