AMN - MOZAMBIQUE: Savannah secures 100% of Jangamo

Savannah Resources has boosted its interest in the 180sqkm Jangamo heavy mineral sands tenement in Mozambique, to 100%. Jangamo is part of the Mutamba heavy minerals sands project which is subject to Savannah’s joint venture with Rio Tinto.

Savannah’s acquisition of the remaining 20% equity interest in Jangamo from Matilda Minerals Limitada has been secured with a payment of A$100,000 in shares.

The AIM-quoted company has also secured cancellation of the deferred consideration terms for Jangamo, in return for a further payment of A$50,000, also payable in shares.

Savannah's chief executive David Archer said, "We're pleased to have reached agreement with the vendors of Matilda to eliminate the deferred consideration obligations from the 2013 acquisition and also to finalise purchase of the 20% not already owned by Savannah.

“I am pleased to confirm that this transaction has been approved by the Mozambique Ministry of Mineral Resources, which has been very supportive of our activities in country."

Savannah expects that the construction and commissioning phases of the Mutamba test project will be completed by the end of this year.

Construction work has started for the pilot plant, which is part of the bulk metallurgical test project. It will be a 20-tonne per hour facility, capable of producing bulk samples of concentrates from mineral sands.

Mozambique based AML, an experienced mineral sands engineering company, has been appointed to undertake the work

David Archer said, “We are pleased that the pilot plant construction work is now well under way at Mutamba and that good progress is being made.

“Once commissioned and operational, the plant will provide concentrate bulk samples for analysis and the preparation of final products for test marketing.

“The completion of the plant will be a key milestone for the Mutamba Consortium as we move the project towards a development decision.”

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