Bushveld Minerals subsidiary signs MoU with VBKom to develop Mokopane Tin Project
Diversified mineral development company Bushveld Minerals has announced that its subsidiary Greenhills Resources Limited has signed a memorandum of understanding (MoU) with VBKom to jointly develop the Mokopane Tin Project.
A South Africa-based consulting company, VBKom operates mainly in the mining industry. It was founded in 2008 with experience in mining engineering, geology, mineral processing, industrial engineering and project management.
Bushveld's tin platform Greenhills Resources was set-up to develop a pan-African portfolio of tin assets with a near-term production profile.
The firm continues to advance its strategy to build a critical mass of tin resources and advance the projects towards production.
Under the MoU, VBKom commits to perform due diligence on the Mokopane Tin Project. Provided there is a successful outcome, VBKom would then enter binding agreements to offer capital investment and technical support for development of Groenfontein and Zaaiplaats deposits into mine commissioning in return for equity participation in the project at a maximum of 50%.
According to the MoU, VBKom will carry out due diligence activities on the Mokopane Tin Project until 31 January 2017.
This joint development is intended to expand on the 2014 Mokopane Tin Project Scoping Study based on the Groenfontein and Zaaiplaaats deposits.
The study projected an initial 691,000t per annum run-of-mine operation to generate 700t per annum of 99.5% tin purity metal. Positive results of the study included a pre-tax IRR of 34.6%, and an all-in cash cost of $14,276 per tonne of tin for a $16m CAPEX.
Bushveld Minerals CEO Fortune Mojapelo said: “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 standalone 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 ongoing due diligence.”