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.
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.”
Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with projects in South Africa and Madagascar, has told DirectorsTalk that it has agreed terms to acquire a significant interest in the Uis Tin project through its wholly owned subsidiary, Greenhills Resources Limited. Under the Agreement Greenhills Resources will acquire 49% interest in DawnminAfrica Investments Ltd which is the 85% owner of the Uis Tin Project, subject to due diligence, from a consortium of Namibian shareholders (the “Sellers”).
Erongo Tin Ltd (“Erongo”) holds the 50.5% majority of the issued share capital of Dawnmin not held by the Sellers. The Sellers comprise: Namuis (Pty) Ltd, Havana Investments (Pty) Ltd and Sweltering Desert Investments (Pty) Ltd.
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 of Namibia 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% 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% by Dawnmin Africa Investments Ltd (the remaining 15% being held by Small Miners of Uis, a company wholly owned by the Namibian 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.
