Bushveld Minerals Limited (LON:BMN) has increased its exposure to tin through the acquisition of a significant interest in the Uis project in Namibia.
Subsidiary Greenhills Resources will acquire 49% of Dawnmin Africa, which owns 85% of the project with the Namibian government owning the remainder.
Majority owner Erongo Tin will retain 50.5% of Dawnmin.
Uis is one of the largest undeveloped opencast hard rock tin deposits in the world in an areas that has a history of significant tin mining.
Bushveld will pay £650,000.in shares for its stake in Dawnmin.
Greenhills Resources is Bushveld's tin platform that eventually will become a stand alone pan-African business.
Fortune Mojapelo, Bushveld Minerals’ chief executive, said Uis would position Greenhills as one of the most significant tin platforms on AIM.
“This development is aligned with our long-stated strategy to establish Greenhills Resources Limited and Lemur Resources Limited as attractive stand-alone platforms.
“For Greenhills this means consolidating a critical mass of mineable, low-cost resources with a near term production profile while for Lemur this means securing a quality power purchase agreement and an IPP license for a thermal coal-based power generation play in Madagascar.”
Bushveld’s main activity is developing its vanadium interests in South Africa, while Lemur has a sizeable coal resource in Madagascar.