22nd May 2014 11:36
LONDON (Alliance News) - Bushveld Minerals Ltd Thursday said it has agreed with the owners of the Zaaiplaats site to extend the technical due diligence and evaluation period on its potential acquisition of the Zaaiplaats Tin Tailings Dump in South Africa.
The mineral development company with several operations in southern Africa said Brent Trust and Sephaku Tin Ltd agreed the extension to allow Bushveld to complete various tests underway to determine the potential commercial value of processing the dump.
In March, the parties signed an agreement for Bushveld to acquire an equity interest of up to 87% in Zaaiplaats for a total of roughly GBP559,470, conditional to the outcome of technical due diligence and evaluation of the site over a two month period, which started on March 20.
Upon completion of a satisfactory due diligence process, the company will acquire an initial 47% shareholding comprising 20% from Brent Trust for GBP111,900 and 27% from Sephaku for GBP111,900.
Bushveld will then fund the development of the dump to feasibility stage and have the option to purchase an additional 40% shareholding from Brent Trust for GBP335,700 in cash or shares or a combination of both.
The site is estimated to contain between 2,600 and 4,500 tonnes of tin and has the potential for early production from the tailings ahead of mining the hard-rock deposits and initial test work demonstrates achievable production of a concentrate product from the tailings.
Bushveld Minerals shares were up 4.8% to 3.85 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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