JOHANNESBURG (miningweekly.com) – Aim-listed Bushveld Minerals has completed the acquisition of a 49.5% interest in Dawnmin Africa Investments through its Greenhills Resources subsidiary.
The miner bought the stake from a consortium of Namibian shareholders through the issue of 41-million ordinary shares at 1p apiece.
Dawnmin's interest in the Uis tin project, in Namibia, is held through its 85% shareholding of Guinea Fowl Investments. The remaining 15% shareholding in Guinea Fowl is held by the Small Miners of Uis, a Namibian government entity.
Erongo, the majority shareholder in Dawnmin, will spend up to A$2-million to complete a scoping study at the project, including the acquisition of processing equipment where deemed appropriate by the board of Bushveld and technical team of Dawnmin, which will be comprised of representatives from Bushveld and Erongo.
Greenhills is granted an evergreen option to acquire a controlling interest in Dawnmin through the acquisition of an additional 1% interest in Dawnmin for a total consideration of $1.2-million, plus a further option to earn an additional 20% in Dawnmin following Erongo's completion of the scoping study.