By Hilary Mare
AIM-listed Bushveld Minerals plans to acquire, through its Greenhills Resources subsidiary, an interest in the Uis tin project.
Greenhills will acquire a 49 percent interest in Dawnmin Africa Investments, which holds 85 percent of the Uis project, from a consortium of Namibian shareholders, including Namibian government-owned subsidiary Small Miners of Uis, Erongo Tin, Namuis, Havana Investments and Sweltering Desert Investments.
Fortune Mojapelo, CEO of Bushveld Minerals, commented: “The completion of the potential acquisition would see Bushveld Minerals acquire a substantial interest in one of the largest undeveloped opencast hard rock tin deposits in the world positioning Greenhills Resources as one of the most significant tin platforms on AIM.
“The proposed acquisition is also subject to regulatory approvals and negotiation of definitive agreements, including a share purchase agreement.
“This development is aligned with our long-stated strategy to establish Greenhills Resources Limited and Lemur Resources Limited as attractive stand-alone platforms with quality strategic partners and strong dedicated management teams to deliver long term shareholder value. For Greenhills this means consolidating a critical mass of mineable, low-cost resources with a near term production profile while for Lemur this means securing a quality power purchase agreement and an IPP license for a thermal coal-based power generation play in Madagascar.
“All this while the company continues to progress its flagship vanadium platform and progress towards completing the Vametco Alloys (Pty) acquisition.” The Uis Tin project is one of the largest undeveloped opencast hard rock tin deposits in the world and has a history of significant tin mining. It is located in the Erongo region and comprises three mining licenses, ML 134, ML 129 (B1 and C1) and ML 133. Historic work confirmed a significant tin resource on all three licenses, the most significant of which is the ML 134 resource estimated at 70.3Mt at 0.14 percent Sn for a total potential resource of over 90kt of contained tin. Further information regarding the project, its history and resources are set out below. The project is held by Guinea Fowl Investments Twenty Seven (Pty) Ltd, which is owned 85 percent by Dawnmin Africa Investments Ltd (the remaining 15 percent being held by Small Miners of Uis, a company wholly owned by the Government). Greenhills Resources, Bushveld’s tin platform, was established to develop a pan-African portfolio of tin assets with a near term production profile. The company continues to advance its stated strategy to build a critical mass of tin resources with a near term production profile, to advance the projects towards production and to establish Greenhills Resources as a standalone tin platform offering exposure to a pan-African tin portfolio to investors. Under the terms of the agreement, Greenhills Resources commits to conduct due diligence on the Uis Tin project, following which, if a successful outcome is attained, Greenhills Resources intends to acquire the initial 49 percent shareholding for a consideration equal to 41 000 000 ordinary shares in Bushveld Minerals (a total sterling amount of approximately £0.65m at the closing price on 12 December 2016). The agreement provides for Greenhills Resources to conduct due diligence on the project over the period to March 31 2017. The proposed acquisition is also subject to, inter alia, regulatory approvals and negotiation of definitive agreements, including a share purchase agreement.
Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The company’s flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore and Titanium Project.
The company’s vision is to become the largest low cost integrated primary vanadium producer through owned low-cost high-grade assets. This includes the development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the company’s energy storage solutions provider.
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