Bushveld Minerals (LON:BMN) is back on the acquisition trail having unveiled plans to buy 50% of the Marble Hall tin project, which is some 110km from the company’s Mokopane deposit in South Africa’s Limpopo Province.
In all it will pay £711,000 in three tranches including an upfront sum, committed spending to develop the asset and a deferred element.
The deposit was prospected by Gold Fields in the 1980's, which identified a one to eight-metre thick “sub-horizontal to gently-dipping breccia”.
A number of boreholes sunk returned significant mineralisation over relatively shallow depths including 1.27% tin oxide over five metres, 0.47% over two metres and 0.53% over three metres.
Bushveld chief executive Fortune Mojapelo said: "We are excited about the recent addition to the Bushveld tin portfolio at a time of strong buoyancy within the tin market.
“The Marble Hall tin project will significantly boost the overall tin inventory of the company, adding a high quality asset with significant historical exploration conducted on it already.
“This is in line with our aim to consolidate more than 50,000 tons of near-surface tin assets that have potential to be brought into production in the short-term."
Last week the group confirmed its plans now it has a controlling 52.67% stake in Lemur Resources.
Boss Mojapelo said the group would “leverage” Lemur's balance sheet, which carries A$17mln, and develop “an earnings profile for the group by targeting cash-flow or near cash-flow producing assets”.