
BERKELEY Mineral Resources is set to acquire a majority stake in the Luanshya copper tailings to further expand its presence in the “favoured international mining destination”.
The Altenative Investment Market(AIM) listed tailings processing company said last week that it has entered into a shareholders’ agreement to buy a 76 percent interest in three Luanshya copper tailings from Ng’wena Mining Resources for US$6 million.
The announcement follows the completion of the exclusivity period granted to Berkeley by a memorandum of understanding signed by the two companies in May.
A statement posted on Proactiveinvestors portal says the deal will be finalised after Berkeley receives the remaining information from Ng’wena to complete due diligence.
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The three dams, Old Dam, Chonga Dam and Akatiti Dam, contain tailings from the formerly operating Roan Antelope copper mine.
The project is located just 90 miles north of the Kabwe closed lead-zinc-silver mine, where Berkeley has just snapped up the remaining tailings.
“We are excited by the prospect of acquiring another valuable asset. Our interest in securing further substantial tailings resources has been confirmed by the due diligence we have carried out to date. We expect to be able to resolve the remaining points in the near future which will allow us to expand what is already a significant asset base,” said chairman of Berkeley Mineral Resources Masoud Alikhani.
Berkeley will pay Ng’wena US$1.25 million on completion of the sale and the remaining US$4.25 million in 2012.
A report prepared in compliance with the globally recognised JORC(joint ore reserves committee) standard in 2008 estimated the indicated resource at the three dams at Luanshya at 162 million tonnes of tailings material grading 0.24 percent copper, containing 380,700 tonnes of copper.
Meanwhile, Berkeley is planning to prepare the Kabwe tailings for processing to sell them on world markets.
Investors are waiting for a new JORC compliant resource statement for Kabwe, which should be available by the end of this month.
Shares in Berkeley declined 0.17 pence (4 percent) to trade at 4.28 pence yesterday in London. The company has a market capital of £43 million
[Zambia Daily Mail]