Savannah Resources has submitted three applications for mining leases to Mozambique’s Ministry of Mineral Resources and Energy regarding the Mutamba Heavy Mineral Sands Projects.
Savannah operates the Mutamba Project with a 20% interest in a consortium agreement with Rio Tinto.
Applications cover a total area of 417.32km² and were submitted in the name of Rio Tinto’s fully owned subsidiary Mutamba Mineral Sands. Leases comprise Jangamo (118.08km²), Dongane / Ravene (161.26km²), and Chilubane (137.98km²).
Savannah Resources CEO David Archer said: “The submission of the mining lease applications is a key milestone and a great start to 2018. This is the final formal step in the process of securing long-term mining leases over globally significant deposits of heavy mineral sands.
“This follows the commissioning of the pilot processing plant in Q4 2017, which will be used to produce concentrate as a part of the pre-feasibility study, which is currently underway.
“We believe our timing means we are well-placed to take advantage of the increasing global demand for titanium feedstocks.”
The ministry will have six months to respond to the applications from the date of submission.
Generally, leases are awarded for 25 years and can be renewed after this period.
Following delivery of the pre-feasibility study, Savannah can increase its equity in the project to 35% and then to 51% after delivery of a feasibility study.