The group’s wholly-owned subsidiary, Greenhills Resources, has bought a 49.5% stake in Dawnmin Africa, which owns 85% of the project.
The Namibian government owns the remaining shares in Uis, which is one of the largest undeveloped opencast hard rock tin deposits in the world.
Greenhills has paid £650,000 in shares for the stake in Dawnmin and Erongo Tin remains the majority shareholder with a 50.5% interest.
Erongo will spend up to A$2mln towards a scoping study and the acquisition of processing equipment.
Greenhills also has the option to earn a further 20% in Dawnmin, including 10% in return for providing funding of up to US$1mln to take the project to pre-feasibility stage and another 10% for putting US$1mln towards a bankable feasibility study.
Bushveld considering Greenhills listing
“The completion of the Uis tin project acquisition by Greenhills is a very significant step in delivering our strategy of establishing Greenhills as an attractive standalone platform, with options for listing Greenhills currently being considered by the company,” said Bushveld chief executive Fortune Mojapelo.
“We will continue to build a critical mass of tin resources in Greenhills offering exposure to a pan-African tin portfolio with a near term production profile.”
Pilot scale production at the existing plant, which is currently being refurbished by Erongo, is being targeted for the second half of 2017.
The project is estimated to host about 20,000 tonnes of tin.
Barak loan fees and interest fully paid up
In a separate stock exchange announcement this morning, Bushveld confirmed it has repaid the US$961,000 in outstanding interest and fees due on its US$11mln bridging loan from Barak Fund.
Bushveld told investors last week that it had paid back the original loan amount and that it would repay the additional fees and interest by the end of the month.
This completes the payment of all outstanding obligations to Barak in terms of the bridge loan facility, the company added.
“As previously announced, we intended to settle the outstanding Barak bridge loan as soon as possible duiring the month of June,” said Mojapelo.
“We are pleased to have honoured our obligations with Barak in such a timely fashion.”
Bushveld took out the short-term loan in support of Bushveld Vametco Limited’s acquisition of a 78.8% stake in Strategic Minerals Corporation from Evraz Group which went through in April.
Bushveld shares edge 4.6% shortly after the opening bell to 9.94p.