Bushveld Minerals Limited Greenhills Resources signs MoU with VBKom (2374Q)
28 November 2016 - 6:00PM
UK Regulatory
TIDMBMN
RNS Number : 2374Q
Bushveld Minerals Limited
28 November 2016
28 November 2016
Bushveld Minerals Limited
("Bushveld" or "the Company")
Greenhills Resources signs MoU with VBKom (Proprietary)
Limited
Bushveld Minerals Limited (AIM: BMN), a diversified mineral
development company with projects in South Africa and Madagascar,
is pleased to announce the signing of a Memorandum of Understanding
(the "MoU") between its wholly owned subsidiary, Greenhills
Resources Limited ("Greenhills Resources"), and VBKom (Proprietary)
Limited ("VBKom") for the joint development of the Mokopane Tin
Project.
VBKom is a South African specialist consulting company operating
primarily in the mining industry. The company was established in
2008 with extensive experience and specialist knowledge in mining
engineering, geology, mineral processing, industrial engineering
and project management.
Greenhills Resources, 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 and to advance the projects towards
production.
Under the terms of the MoU, VBKom commits to conduct due
diligence on the Mokopane Tin Project, following which, if a
successful outcome, VBKom intends to enter binding agreements to
provide capital investment and technical support for the
development of the Groenfontein and Zaaiplaats deposits to mine
commissioning in return for equity participation in the project,
not exceeding 50%. The MoU provides for VBKom to conduct due
diligence on the Mokopane Tin Project for a period to 31 January
2017.
The joint development effort is expected to build on the 2014
Mokopane Tin Project Scoping Study (the "Study") based on the two
deposits, Groenfontein and Zaaiplaaats. The Study envisaged an
initial 691,000 tons per annum Run-of-Mine operation to produce 700
tons per annum of 99.5% Sn purity metal. The positive results of
the Study included a pre-tax IRR of 34.6%, all-in cash cost of
US$14,276/ton Sn for a US$16 million capex and using a long-term
tin price of $22 928/ton (current: $21 610/ton).
Fortune Mojapelo, CEO of Bushveld Minerals, commented, "We have
articulated a strategy for Greenhills Resources to consolidate a
critical mass of mineable, low-cost tin resources with a near term
production profile in order to build Greenhills' capacity as a
stand-alone tin company. The signed MoU, which introduces a
credible potential technical and financial partner for the Mokopane
Tin Project, is a welcome step towards achieving that goal. We look
forward to developing a long lasting relationship with VBKom,
subject to the results of the on-going due diligence."
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulations (EU) No. 596/2014.
Enquiries: info@bushveldminerals.com
Bushveld Minerals
Fortune Mojapelo +27 (0) 11 268 6555
Beaufort Securities
Jon Bellis +44 (0) 20 7382 8300
Strand Hanson
Andrew Emmott / Ritchie Balmer +44 (0) 20 7409 3494
Blytheweigh
Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a diversified AIM listed mineral
development company with a portfolio of vanadium, iron ore, tin and
coal greenfield assets in Southern Africa and Madagascar. The
Company's flagship platform, the vanadium platform, includes the
Mokopane Vanadium Project, the Brits Vanadium Project, and the
Bushveld Iron Ore & Titanium Project. The tin platform
comprises the Mokopane Tin Project whereas the Imaloto Coal
Project, which is being developed as one of Madagascar's leading
independent power producers, makes up the Company's coal
platform.
The Company's vision is to become the largest low cost
integrated primary vanadium producer through owned low-cost
high-grade assets. This incorporates development and promotion of
the role of vanadium in the growing global energy storage market
through Bushveld Energy, the Company's energy storage solutions
provider. Whilst the demand for vanadium remains largely anchored
in a slow growing steel industry, Bushveld Minerals believes there
is a strong potential for imminent significant global vanadium
demand surge from the fast-growing energy storage market,
particularly through the use and adoption of Vanadium Redox Flow
Batteries.
Bushveld Minerals' approach to project development recognises
that whilst attractive project economics are imperative, they are
insufficient to secure capital to bring them to account. A clear
path to production with a visible timeframe, low capex requirements
and scalability are important factors in retaining an attractive
exit option. This philosophy is core to the Company's strategy in
developing projects. Detailed information on the Company and
progress to date can be accessed on the website:
www.bushveldminerals.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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