Giyani Gold has signed a letter of intent (LoI) with Menzi Battery Metals to acquire 70% interest in two past-producing manganese mines located in Zambia.
The two mines, namely Kampumba and Chiwefwe manganese open-pit mines, operated between 1954 and 1968.
In this tenure, the two mines were estimated to produce a total of 360,000 tonnes combined at grades exceeding 50% manganese.
The mines are close to infrastructure such as gravel roads, railway, power and labour.
Geophysical survey data and historical non-NI 43-101 compliant resource estimates reveal that both mines have significant manganese potential.
According to the LoI, Giyani will pay $200,000 in cash and commit to pay another $1m over the next five years to Menzi after completion of due diligence, title review and signing of a definitive agreement.
Giyani has assigned Boswell Projects in the role of project manager for all of its assets located in southern Africa.
Within the LoI effective period and subsequent agreements, Boswell Projects will accomplish a due diligence review of the assets and evaluate the potential for near-term production from these two mines.
Boswell Projects will also provide additional corporate services to Giyani.
This acquisition of two mines in Zambia with its existing projects in Botswana will widen Giyani’s portfolio of manganese assets. It will also facilitate the company’s strategy to purchase raw materials for the booming battery industry.