25th Mar 2014 12:57
LONDON (Alliance News) - Bushveld Minerals Ltd Tuesday said it has signed an agreement to acquire the Zaaiplaats Tin Tailings Dump in South Africa from Brent Trust and Sephaku Tin Pty Ltd.
The mineral development company with several operations in Southern Africa said it will 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 commenced 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 also announced that it has signed a new funding agreement with Darwin Strategic Ltd in which Darwin has subscribed for 50 million shares, or 11.0% of the company at a price of 5.7 pence each.
The company said an aggregate issue price of GBP2.9 million is to be satisfied by the issue of 2.9 million redeemable subscription notes and over the course of the 12 months following admission, the company will at its sole discretion, instruct Darwin to sell subscription shares and redeem the subscription notes.
Bushveld shares were up 3.7% to 5.91 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Bushveld Minerals