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Bushveld Minerals finds potential partner for Mokopane tin project

A deal would see VBKom provide capital and technical support in return for a stake that will not exceed 50%.

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Mokopane will cost US$16mln to get up and running

Bushveld Minerals Limited (LON:BMN)  has signed a Memorandum of Understanding for its Mokopane tin project with South African group VBKom.

The consultant will carry out due diligence ahead of a possible agreement to provide capital investment and technical support for the development of the Groenfontein and Zaaiplaats deposits.

A binding deal would see VBKom provide capital and technical support in return for a stake that will not exceed 50%.

The MoU provides for VBKom to conduct due diligence on the Mokopane tin project for a period to 31 January.

A scoping study on the deposits at Mokopane in 2014 indicated an initial 691,000 tons per annum Run-of-Mine operation, producing 700 tons of tin each year to  generate a pre-tax return of 34.6% using a long-term tin price of $22 928/ton (current: $21 610/ton). Capital expenditure to build the mine would US$16mln.

Fortune Mojapelo, Bushveld Minerals’ chief executive, said: “The signed MoU, which introduces a credible potential technical and financial partner for the Mokopane tin project.” 

Quick facts: Bushveld Minerals Ltd

Price: 19.1 GBX

LSE:BMN
Market: LSE
Market Cap: £227.59 m
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