50% Acquisition of Marble Hall Tin Project
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26 September 2013 |
Bushveld Minerals Ltd
("Bushveld" or the "Company")
Update - Bushveld acquires 50% of the Marble Hall Tin Project
Bushveld Minerals Limited (AIM: BMN), a mineral development company focused on iron and tin projects in southern Africa, is pleased to announce the acquisition of a 50% interest in the Marble Hall Tin Project in Limpopo Province, South Africa.
Highlights:
· Bushveld will acquire 50% of the Marble Hall Tin Project ("Marble Hall") for an upfront payment of R2 million (GBP126,000) .
· Spending commitment up to R4.3 million (GBP270,900) to take the project to pre -feasibility.
· A deferred payment of R 5 million (GBP315,000) subject to completion of pre-feasibility studies and a decision to progress to bankable feasibility studies and/or development
· Marble Hall Project is located approximately 110km from Bushveld's Mokopane Tin Project.
· Historic data available includes a pre-feasibility study undertaken by Gold Fields Limited in the 1980's.
· Bushveld exploration programme to target maiden JORC resource early 2014.
The Marble Hall Tin Project
The Marble Hall tin project is centred around the abandoned Vlakfontein tin mine in Limpopo Province, South Africa, approximately 10 km NNW of the town of Marble Hall. Currently, mineral rights are held over the farms Vlakfontein 723 KS (excluding Portion 2), Dronkfontein 724 KS, Spoedwel 701 KS and Boschhoek 839 KS. A Section 102 application process is currently underway to expand the mineral rights holding to include Kwaggfontein 722 KS and Portion 2 of Vlakfontein 723 KS. The location of the project (~110 km SE of Bushveld's Mokopane Tin Project) means that similar logistics can be used for both the Marble Hall and Mokopane Tin projects, and a centralised tin smelter could be used to produce for concentrates from both projects.
The deposit was prospected by Gold Fields Limited in the 1980's, including a pre-feasibility study. A total of 60 boreholes were drilled by Gold Fields on the farm Vlakfontein 723 KS, who reported mineralisation in 1 - 8 m thick sub-horizontal to gently-dipping breccia that crop south. A number of boreholes intersected significant mineralisation at relatively shallow depths (<200 m), including 1.27% SnO2 over 5 m, 0.47% SnO2 over 2 m and 0.53% SnO2 over 3 m (calculated from Gold Fields historic assay records). A potential (non-JORC compliant) resource of 3 750 000 tons @ 0.32% Sn (i.e. 12 000 tonnes of Sn) was calculated, but the project was not taken further by Gold Fields at the time.
The Company believes there is scope for a significant shallow tin resource, and plans to complete initial drilling by end of Q4 2013, and define a mineral resource by early 2014.
CEO of Bushveld Minerals, Fortune Mojapelo said: "We are excited about the recent addition to the Bushveld Tin portfolio at a time of strong buoyancy within the tin market. The Marble Hall Tin Project will significantly boost the overall tin inventory of the company, adding a high quality asset with significant historical exploration conducted on it already. This is in line with our aim to consolidate more than 50,000 tons of near-surface tin assets that have potential to be brought into production in the short-term."
Transaction terms
The Marble Hall Project is currently owned by Lerama Resources (Pty) Ltd ("Lerama"). Lerama currently holds a Prospecting Right (LP 30/5/1/1/2/428PR) over the farms Vlakfontein 723KS (excluding Portion 2), Dronkfontein 724KS and Boschhoek 839KS ("Current PR"). A Section 102 (Minerals & Petroleum Resources Development Act) application has been lodged with the Department of Mineral Resources for Kwaggafontein, Rietfontein and Portion 2 of the farm Vlakfontein.
Bushveld will acquire the 50% stake from Acacia Resources Limited (Acacia), which has a right to a 50% interest in the Marble Hall Tin Project, on the following basis:
1. An upfront payment of R2 million (GBP129,862) to be paid to the existing shareholders.
2. A spending commitment of up to R4.3 million (GBP270,900) to take the project to pre-feasibility.
3. A deferred payment, of R 5 million (GBP315,000) subject to completion of pre-feasibility studies and a decision to progress to bankable feasibility studies and/or development.
Acacia is a related party to Bushveld by virtue of being a significant shareholder. However this transaction is not deemed a Related Party Transaction under the AIM Rules.
Enquiries: info@bushveldminerals.com
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Bushveld Minerals Fortune Mojapelo |
+27 (0) 11 268 6555 |
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Fox Davies Jonathan Evans |
+44 (0) 20 3463 5000 |
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Tavistock Communications Jos Simson/ Nuala Gallagher |
+44 (0) 20 7920 3150 |
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Tielle Communications Stéphanie Leclercq |
+27 (0) 83 307 7587 |
- ENDS -
Notes to the editor
[updated version]
This information is provided by RNS
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