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(Alliance News) - Mineral resource company Keras Resources PLC said the results of testwork performed on its Nayega Manganese project in northern Togo were successful.
Keras, which collected a 10,000 tonne bulk sample from its flagship mine to determine whether its ore was suitable to be used in the steel industry and battery market, said that Nayega's ore is best suited to producing the silico-manganese alloy.
According to Keras, there is significant potential for Nayega's resources to replace cobalt in lithium-ion batteries, because it could be a more cost-effective and responsibly mined alternative. The company said that diversifying into the battery and growing electric vehicles markets could de-risk its exposure to the volatile steel industry.
Chief Executive Russell Lamming said: "We are exceptionally pleased that the bulk sample from Nayega was successfully delivered on time, within budget and has been underpinned by encouraging chemical analysis which further consolidates the commercial viability of the Nayega mine."
"In addition, with the inherently volatile nature of the downstream manganese alloy market and the growing demand for a cost effective, responsibly mined replacement for cobalt in the production of lithium-ion batteries, we have started additional leach testwork on the transitional and saprolitic zones of the Nayega orebody that were not tested in the bulk sample."
The company, which made a pretax loss of GBP439,000 in the six months to March 31, said it is still in talks with partners for a potential off-take agreement, which could provide additional funding for infrastructure of the Nayega plant.
Shares in Keras were up 5.2% at 0.43 pence each on London on Thursday morning.
