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Obtala Resources' Bushveld Resources and Greenhills to list on AIM

Last updated: 09:05 09 Mar 2012 GMT, First published: 10:05 09 Mar 2012 GMT

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Obtala Resources’ (LON:OBT) announced that Bushveld Minerals Limited (LON:BMN) is to list on the AIM market. Bushveld is a new holding company, which will acquire Bushveld Resources and Greenhills, in each of which Obtala will buy 50 percent stakes prior to admission.

BMN will raise gross proceeds of £5.72 million at a placing price of 20 pence per share. The new company will have a market cap of £56.7 million.

Following the admission of Bushveld’s shares to AIM, Obtala’s stake will decrease from 50 percent to 46 percent, while another major shareholder Mineral Wealth International will see its shareholding shrink from 33 percent to 29.6 percent.

VML Resources will own an 11.5 percent stake in the company, down from 14 percent, while Blackrock Investment will now have a 7.1 percent stake after buying shares in the firm.

Bushveld’s main asset is the Bushveld iron ore project, which includes two licences hosting a resource – which is compliant with the JORC standard – of over 600 million tonnes. The company said further drilling is expected to “substantially” add to the resource.

At the Mokopane tin project, which is located within the Bushveld complex and has a resource of more than 5,000 tonnes of tin, the company has explored one target and plans to drill at a further four targets.

“The management team believes that the Bushveld Complex continues to provide a substantial number of new geological targets especially across iron ore and tin commodities,” Bushveld said in a statement today.

“The management team will seek to identify new opportunities in the Bushveld Complex that are capable of rapid development due to the well understood mineralisation in the Bushveld Complex.”

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