LONDON (Alliance News) - Bushveld Minerals Ltd Tuesday said the results from the Mokopane tin project scoping study were in line with its expectations and said it has pulled out of the deal to buy the Zaaiplaats tin-tailings dump.
Bushveld said the scoping study at Mokopane in South Africa was in line with the company's criteria for the development of its projects, offering low-cost curve positioning, a proven path to near-term production, low capital expenditure and scalability.
"This scoping study demonstrates progress towards that goal and we are confident the identified targets will enable us to do so long-term, while we prioritise, in the short term, the development of the Bushveld Vanadium Project in the short to medium term," said Bushveld Chief Executive Fortune Mojapelo.
The company also said it has pulled out of a deal to buy the Zaaiplaats tin-tailings dump following the "unsatisfactory" outcome of a due diligence exercise conducted on the deal. Bushveld said the realisable size and grade of the tin resource at Zaaiplaats, and the realisable recoveries, fell below its acquisition criteria.
Bushveld had entered into the deal to buy Zaaiplaats from Brent Trust and Sephaku Tin Pty Ltd back in March for GBP559,470.
Bushveld shares were down 3.0% to 3.76 pence on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Bushveld Minerals (BMN)