Last checked at 28 Nov 2016 07:00
28 November 2016
Bushveld Minerals Limited
("Bushveld" or "the Company")
Greenhills Resources signs MoU with VBKom (Proprietary) Limited
Bushveld Minerals Limited (AIM: BMN), a diversified mineral development company with projects in South Africa and Madagascar, is pleased to announce the signing of a Memorandum of Understanding (the "MoU") between its wholly owned subsidiary, Greenhills Resources Limited ("Greenhills Resources"), and VBKom (Proprietary) Limited ("VBKom") for the joint development of the Mokopane Tin Project.
VBKom is a South African specialist consulting company operating primarily in the mining industry. The company was established in 2008 with extensive experience and specialist knowledge in mining engineering, geology, mineral processing, industrial engineering and project management.
Greenhills Resources, Bushveld's tin platform, was established to develop a pan-African portfolio of tin assets with a near term production profile. The company continues to advance its stated strategy to build a critical mass of tin resources with a near term production profile and to advance the projects towards production.
Under the terms of the MoU, VBKom commits to conduct due diligence on the Mokopane Tin Project, following which, if a successful outcome, VBKom intends to enter binding agreements to provide capital investment and technical support for the development of the Groenfontein and Zaaiplaats deposits to mine commissioning in return for equity participation in the project, not exceeding 50%. The MoU provides for VBKom to conduct due diligence on the Mokopane Tin Project for a period to 31 January 2017.
The joint development effort is expected to build on the 2014 Mokopane Tin Project Scoping Study (the "Study") based on the two deposits, Groenfontein and Zaaiplaaats. The Study envisaged an initial 691,000 tons per annum Run-of-Mine operation to produce 700 tons per annum of 99.5% Sn purity metal. The positive results of the Study included a pre-tax IRR of 34.6%, all-in cash cost of US$14,276/ton Sn for a US$16 million capex and using a long-term tin price of $22 928/ton (current: $21 610/ton).
Fortune Mojapelo, CEO of Bushveld Minerals, commented, "We have articulated a strategy for Greenhills Resources to consolidate a critical mass of mineable, low-cost tin resources with a near term production profile in order to build Greenhills' capacity as a stand-alone tin company. The signed MoU, which introduces a credible potential technical and financial partner for the Mokopane Tin Project, is a welcome step towards achieving that goal. We look forward to developing a long lasting relationship with VBKom, subject to the results of the on-going due diligence."
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
Enquiries: info@bushveldminerals.com
Bushveld Minerals
Fortune Mojapelo +27 (0) 11 268 6555
Beaufort Securities
Jon Bellis +44 (0) 20 7382 8300
Strand Hanson
Andrew Emmott / Ritchie Balmer +44 (0) 20 7409 3494
Blytheweigh
Tim Blythe / Camila Horsfall +44 (0) 20 7138 3204
Gabriella von llle +27 (0) 711 121 907
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a diversified AIM listed mineral development company with a portfolio of vanadium, iron ore, tin and coal greenfield assets in Southern Africa and Madagascar. The Company's flagship platform, the vanadium platform, includes the Mokopane Vanadium Project, the Brits Vanadium Project, and the Bushveld Iron Ore & Titanium Project. The tin platform comprises the Mokopane Tin Project whereas the Imaloto Coal Project, which is being developed as one of Madagascar's leading independent power producers, makes up the Company's coal platform.
The Company's vision is to become the largest low cost integrated primary vanadium producer through owned low-cost high-grade assets. This incorporates development and promotion of the role of vanadium in the growing global energy storage market through Bushveld Energy, the Company's energy storage solutions provider. Whilst the demand for vanadium remains largely anchored in a slow growing steel industry, Bushveld Minerals believes there is a strong potential for imminent significant global vanadium demand surge from the fast-growing energy storage market, particularly through the use and adoption of Vanadium Redox Flow Batteries.
Bushveld Minerals' approach to project development recognises that whilst attractive project economics are imperative, they are insufficient to secure capital to bring them to account. A clear path to production with a visible timeframe, low capex requirements and scalability are important factors in retaining an attractive exit option. This philosophy is core to the Company's strategy in developing projects. Detailed information on the Company and progress to date can be accessed on the website: www.bushveldminerals.com