AMN - NAMIBIA: Bushveld acquires interest in Uis tin project

Bushveld Minerals, a diversified mineral development company with projects in South Africa and Madagascar, has agreed terms to acquire a significant interest in the Uis tin project in Namibia through its wholly-owned subsidiary, Greenhills Resources.

Under the agreement Greenhills will acquire 49% interest in Dawnmin Africa Investments Ltd,which is the 85% owner of the Uis project, subject to due diligence, from a consortium of Namibian shareholders.

Erongo Tin Ltd holds the 50.5% majority of the issued share capital of Dawnmin not held by the sellers. The sellers comprise Namuis, Havana Investments and Sweltering Desert Investments.

The Uis project is one of the largest undeveloped open-pit hard rock tin deposits in the world and has a history of significant tin mining. It is in the Erongo Region of Namibia and comprises three mining licences, ML 134, ML 129 (B1 and C1) and ML 133. Historic work confirmed a significant tin resource on all three licences, the most significant of which is the ML 134 resource estimated at 70.3 Mt at 0.14% Sn.

Greenhills Resources was established to develop a pan-African portfolio of tin assets with a near-term production profile. The company continues to advance its stated strategy to build a critical mass of tin resources with a near-term production profile, to advance the projects towards production and to establish Greenhills Resources as a standalone tin platform offering exposure to a pan-African tin portfolio to investors.

Under the terms of the agreement, Greenhills commits to conduct due diligence on the Uis tin project, following which, if a successful outcome is attained, Greenhills intends to acquire the initial 49% shareholding.

Bushveld Minerals’ CEO Fortune Mojapelo says: "The completion of the potential acquisition would see Bushveld Minerals acquire a substantial interest in one of the largest undeveloped opencast hard rock tin deposits in the world positioning Greenhills Resources as one of the most significant tin platforms on AIM.

“This development is aligned with our long-stated strategy to establish Greenhills Resources and Lemur Resourcesas attractive stand-alone platforms with quality strategic partners and strong dedicated management teams to deliver long term shareholder value.

“For Greenhills this means consolidating a critical mass of mineable, low-cost resources with a near-term production profile while for Lemur this means securing a quality power purchase agreement and an IPP licence for a thermal coal-based power generation play in Madagascar.

All this while the company continues to progress its flagship vanadium platform and progress towards completing the Vametco Alloys acquisition."

www.bushveldminerals.com

News courtesy of International Mining