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LONDON (Alliance News) - Bushveld Minerals Ltd on Tuesday said its subsidiary Lemur Resources has reached a settlement regarding the mining licence 4578 within its Imaloto power project coal concession in Madagascar, and now has ownership of the permit.
The mineral development company said Lemur has reached a settlement with Madam Rahajasoamampionona Ramiaramanana in respect of mining licence 4578, with Madam Rahajasoamampionona undertaking to give up all claims to the licence. Both parties have agreed to cease all legal processes, including applications or appeals previously lodged with the Madagascar judicial system, Bushveld said.
No further details as to the settlement were given.
Bushveld said it is still looking to secure a power purchase agreement with the Madagascar state owned water and utility company JIRAMA, which would pave the way for the site's economic realisation.
The project has a measured and indicated resource of 136.0 million tonnes of coal and has completed a pre-feasibility study on the viability of generating power and transmitting the power to the surrounding areas and the strategic port town of Tulear, Bushveld said.
"We welcome the settlement, which confirms Lemur Resources' ownership of mining permit 4578, an important part of the Imaloto coal project. The settlement paves the way for Lemur to take forward the development of its Imaloto Coal and power projects," said Chief Executive Fortune Mojapelo.
"Key to this development is the power purchase agreement over which the company is in negotiations with the Madagascar authorities. The agreement will allow the next stage in the development of the Imaloto project to be implemented as an integrated mine to power and transmission project, providing a captive market for its coal resource and unlocking the intrinsic value in the underlying project," Mojapelo added.
Shares in Bushveld were up 3.3% at 2.04 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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