Bushveld Minerals Limited (AIM: BMN), the vanadium producing company with a diversified projects portfolio of tin and coal assets in Southern Africa, is pleased to announce that, further to the announcement made on 4 April 2017, all the conditions precedent to the Sale of Shares and Claims Agreement entered into to by the Company’s wholly owned subsidiary Greenhills Resources Limited to acquire a 49.5% interest in Dawnmin Africa Investments Limited from a consortium of Namibian shareholders, have now been fulfilled and accordingly the Acquisition has completed.
Dawnmin’s interest in the Uis tin project (the “Project”) is held through its 85% shareholding of Guinea Fowl Investments 27 (Proprietary) Limited (“Guinea Fowl”). The remaining 15% shareholding in Guinea Fowl is held by the Small Miners of Uis, a Namibian Government entity.
In accordance with the terms of the SSCA, 41 million ordinary shares of 1 pence each in Bushveld (“Consideration Shares”) have been issued to the Sellers. It is expected these shares will be admitted to trading on AIM by 21 June 2017.
Under the terms of the Acquisition:
— The Consideration Shares are subject to a six months trading encumbrance and / or sale restriction from the date of issue;
— Erongo, the majority shareholder in Dawnmin, will spend up to A$2.0 million (two million Australian Dollars) to complete a scoping study at the project, including the acquisition of processing equipment where deemed appropriate by the board of Bushveld and Technical team of Dawnmin, which will be comprised of representatives from Bushveld and Erongo;
— Greenhills is granted an ever-green option to acquire a controlling interest in Dawnmin through the acquisition of an additional 1% interest in Dawnmin for a total consideration of US$1.2 million, plus a further option to earn an additional 20% in Dawnmin following Erongo’s completion of the scoping study, as follows;
o An additional 10% shareholding in Dawnmin in return for providing funding of up to US$1 million to take the Project to pre-feasibility stage; and
o A further 10% shareholding in Dawnmin in return for providing an additional up to US$1 million to deliver a bankable feasibility study;
— Greenhills has appointed two directors to the boards of Dawnmin and Guinea Fowl to sit alongside the two Erongo-nominated directors;
— No regulatory approvals were required from the Namibian Minister of Mines for the acquisition.
Background to the Uis Tin Project
The Uis Tin Project is one of the largest undeveloped opencast hard rock tin deposits in the world and has a history of significant tin mining and an estimated 70.3Mt non-JORC resource at 0.14% Sn for a total potential resource of over 90kt of contained tin.
— Due diligence confirms large well developed pegmatite ore body with 0.3% Sn commonly found in greisenised zones, estimated to host approximately 20,000 tons of tin;
— Intent to confirm JORC compliant resource, advance feasibility studies, while simultaneously refurbishing an old existing plant for a 10tph pilot scale production of tin concentrate, with a view to scale up targeting the identified high grade zones
The Project is located in the Erongo Region of Namibia and comprises three mining licenses, ML 134, ML 129 (B1 and C1) and ML 133. Historic work confirmed a significant tin resource on all three licenses, the most significant of which is the ML 134 resource estimated at 70.3Mt at 0.14% Sn for a total potential resource of over 90kt of contained tin.
Following due diligence work recently completed, the Company has identified significant high grade zones that it recommends form the basis for early production with pilot scale production, at the existing plant which is currently being refurbished by Erongo, targeted for the second half of 2017. Further information regarding the project, its history and resources is set out in the Company’s 4 April 2017 RNS.
Greenhills, Bushveld’s tin platform, 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 as a standalone tin platform offering exposure to a pan-African tin portfolio to investors. Options for listing Greenhills as a stand-alone platform are currently being considered by the Company. These are however, at an early stage and updates in this regard will be provided if and when appropriate.
