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LONDON (Alliance News) - Savannah Resources PLC on Monday said that it is awaiting mining lease for its joint venture Mutamba Heavy Minerals Sands project in Mozambique whilst also looking forward to grow its holding upon completion of pre-feasibility and definitive feasibility studies.
The gold mining company currently holds 20% interest in Mutamba project as a part of agreement with Rio Tinto PLC. It intends to up its stake after completion of a pre-feasibility study to 35% and further increase the holding to 51% upon delivery of a definitive feasibility study.
In mid-January, the company said that it applied for 25-year mining license to the ministry of Mozambique with a renewing option at the end of its term. The application is currently under the review, Savannah Resources said and the respond is expected during the six-month period.
The company said that under the licensing process, the consortium has provided local community with 508 double school desks for district schools, over 7,000 seedlings for appropriate trade skill development and supplied around 7,500 people with clean, potable water.
Savannah Resources said that the ongoing pre-feasibility study is expected to finish in early 2019 and will further define the commercial potential of Mutamba project. The company said that its currently coming to the end of the first phase of the pre-feasibility study which will inform and lead the remaining work required to complete the second phase.
"Whilst we await the outcome of Government analysis, we continue to make progress in advancing some critical work streams at Mutamba," said Chief Executive David Archer. "It is an exciting time as we see the future mine plan form and take shape."
Shares in Savannah Resources were closed flat at 5.35 pence per share on Monday.
