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(Sharecast News) - Savannah Resources announced on Wednesday that the Minister of Mineral Resources and Energy in Mozambique has issued Mining Licence 9229C to Mutamba Mineral Sands.
The AIM-traded firm said the new concession was the second mining license issued over the Mutamba Heavy Mineral Sands Project, which is held in joint venture with mining major Rio Tinto.
It said licence 9229C was issued, covering 16,126 hectares and valid to May 2044, with the possibility of an additional 25-year extension.
The licence formed part of Mutamba, which contains an indicated and inferred mineral resource of 4.4 billion tonnes, grading 3.9% total heavy minerals.
Licence 9229C was the second of three contiguous concessions to be issued, that would result in the full tenement permitting of Mutamba, the board explained.
The concession is close to the Port of Inhambane and has a daily air service, a reliable power supply and excellent road connections, the Savannah directors added.
"We are delighted with progress thus far at Mutamba, which we're developing in partnership with Rio Tinto," said chief executive officer David Archer.
"We believe this is one of the most attractive undeveloped mineral sands deposits in the world.
"Having received a second mining licence, we're now waiting on a third, which has already been conditionally awarded."
At 1406 GMT, shares in Savannah Resources were up 3.11% at 2.32p.
23 Jun 2016 07:38