LONDON (Alliance News) - Bushveld Minerals Ltd on Wednesday said its coal and energy subsidiary has signed a finance deal, with further talks with lenders ongoing.
Lemur Holdings Ltd is developing the Imaloto coal mining and power project in Madagascar.
During the three months to March, Lemur signed a USD1 million project preparation finance deal with the Development Bank of South Africa, with further funding to come.
The cash will help it complete development work, allowing it to reach financial close for the project.
A feasibility study for Imaloto has been completed, and Lemur is also considering plans to include underground mining.
Bushveld added engineering, procurement, and construction talks are continuing, while a social & environmental impact assessment is on course to be completed in the second quarter of 2019.
Lemur Chief Executive Prince Nyati commented: "We are pleased the Imaloto project is progressing according to plan. We are particularly delighted to receive support from the Development Bank of South Africa."
"We believe the funding will help us finalise our objective of achieving financial close and providing reliable base load power to southern Madagascar. Development Bank of South Africa participation in the development of the Imaloto project highlights the economic potential of our project as well as the developmental benefits it offers to south-western Madagascar."
Bushveld's shares were 1.5% higher on Wednesday afternoon at 33.49 pence each.
Bushveld Minerals (BMN)