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.
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
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]
Who are they and where are they from, what is there is their reputation in mining industry, how do they treat employees?
#1 @ Mwansa
foreign mining companies do not need reference…
the only reference for Rupiah and his crooks is the amount of bribes….
Mwansa Haakabanze Mukelebai Banda,
Can you please kindly Google them? There is even information in the news above.
Mr No1 the deal is done so your comments really do not carry much weight… Â just no that other people are making money while you quest who, what. when…
No 2. What does this got to do with the government…? This is a private deal between two private companies… Â my company bought three tailing dumps in Chingola and has nothing to do with government. You need to wake up and understand the how to make money… no amount of blogging about who, what, when and blaming the government will take you anywhere.. you are still in the Kaunda mentality
#5 spot on great advice, I hope our fellow people in PF take it seriously. They seem so drunk with the money in your pocket Doctrine of 90 days economic miracle.
Mwansa Haakabanze Mukelebai Banda @ 1. Who are you asking? Don’t you know how to use the internet or you do? Apamwamba has told you loud and clear what you should do – my 6-year old son would have told you the same.
So the tailing in Luanshya were not part of what was sold to the Chinese? Are they even being processed or kept for the future.
BMR also now own the tailings dumps in Kabwe and are also looking at various other sites in zambia and also other parts of the world. They have a very good relationship with the ZG and will help to clean up the areas around the mines. They have a working relationship with Contesa the charity organisation and are helping with schools and hospitals too.
If you google BMRPLC.com then you will find that the company involved is taking great pains to help the local communities with health, education and employment. The Board of Directors have made a point of helping out the people in the local areas of their mines and processing plants.
BMR are currently looking to purchase and process more sites throughout Zambia. They are looking to build a more Environmentally friendly form of mining. they have the backing to help clean up the toxic dumps that are currently causing massive health hazards throughout the area!
Pimping Luanshya once again