African Consolidated Resources Plc : Nkombwa Hi...
African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining
23 February 2012
African Consolidated Resources plc ('ACR' or 'the Company')
Nkombwa Hills Update
African Consolidated Resources plc, the AIM listed resource and development company focused in Southern Africa, announces that further to the news release of 4 October 2011 regarding the improper excise of a portion of ACR's Nkombwa Rare Earth Project in Zambia ('the Nkombwa Hills Project'), the Company is pleased to report that it has received a letter ('the Letter') from the Ministry of Mines and Natural Resources ('MMNR') confirming that ACR holds the sole valid mining right existing in the Nkombwa Hills exploration licence area.
Following the election of a new Government in Zambia last year, the MMNR announced in October 2011 a moratorium on the issue and transfer of mining licences in the country in order to clear irregularities that had been accumulating for some years. The Letter states that the purported excise from the Company's exploration licence at Nkombwa Hill was one of the issues covered by the investigation. The Letter further states that the Company should continue its exploration programme whilst waiting for the "physical resolution of the Ministry".
It would appear that on account of the continuing moratorium the invalid small scale licence will remain on the cadastre pending the "physical resolution of the Ministry" as indicated in the Letter. The Company is focussed on achieving this physical resolution as soon as possible, but to the extent that the process is affected by the general moratorium this is outside the Company's control. In this connection the Deputy Minister of Mines has stated this week that it was in the best interests of the Government to lift the moratorium by next month and assured mining companies that everything was being done to speed up the process. The Deputy Minister of Mines commented that the Government had hired a South African firm to put up the computerization system which had since been completed and that the Ministry was currently working at resolving the licensing conflicts and irregularities which had arisen.
As announced on 11 June 2010, Southern Crown has the right to earn a 50% equity interest in the Nkombwa Project in exchange for a minimum spend of US$1.35 million in order to define an Indicated JORC Resource. Thereafter, ACR may elect to share expenditure equally with Southern Crown and maintain a 50% interest. As announced on 4 October 2011, Southern Crown suspended explorations on the Nkombwa project until the improper excision of a portion of the Company's exploration licence had been resolved. ACR will be discussing the project with Southern Crown in the coming weeks, including whether to restart exploration. A further announcement will be made once a new plan is agreed.
ACR Chairman, Roy Tucker, said "Following the identification of high grade rare earth mineralisation, as announced on 17 May 2011, we are therefore delighted to have received a letter from MMNR confirming the validity of our licence. There has been substantial progress made so far by the Ministry in regularising the nation's tenure, and in line with this, I believe that this is a first step towards evaluating the potential recommencement of exploration on the project. We remain focussed on working with the Ministry to achieve the physical resolution in this matter."
For further information visit www.acrplc.com or please contact:
| Roy Tucker | African Consolidated Resources plc | +44 (0) 1622 816918 +44 (0) 7920 189012 |
| Andrew Cranswick | African Consolidated Resources plc | +44 (0) 7920 189010 |
| Andrew Godber | Panmure Gordon (UK) Limited | +44 (0) 207 459 3600 |
| Callum Stewart | Panmure Gordon (UK) Limited | +44 (0) 207 459 3600 |
| Susie Geliher | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: African Consolidated Resources Plc via Thomson Reuters ONE
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund