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LONDON (Alliance News) - Bushveld Minerals Ltd on Tuesday said it has agreed to buy a significant stake in the Uis tin project in Namibia, one of the largest undeveloped opencast hard rock tin deposits in the world.
Bushveld said, through its Greenhills Resources subsidiary, that it will buy a 49% interest in Dawnmin Africa Investments Ltd, which owns 85% of the Uis project. The stake is being purchased from Namuis (Pty) Ltd, Havana Investments (Pty) Ltd and Sweltering Desert Investments (Pty) Ltd.
Erongo Tin Ltd holds the remaining majority stake in Dawnmin that is not held by the sellers and will be Bushveld's partner after the deal.
Just one of the three licences covering the project has a resource estimate of 70.3 million tonnes graded at 0.14% tin, with over 90,000 tonnes of contained tin.
Guinea Fowl Investments Twenty Seven (Pty) Ltd is the 100% owner of the project. Dawnmin holds an 85% stake in the company while the other 15% is held the Namibian government.
Bushveld will issue 41.0 million shares to the sellers in order to acquire the 49% stake, with a total worth of GBP650,000. Due diligence must be conducted and completed before the end of March 2017, and is also subject to regulatory approval and definitive paperwork being signed.
"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," said Chief Executive Fortune Mojapelo.
Bushveld shares were up 1.6% to 1.60 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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