Australian development company Ore Corp received approval from the Tanzanian Fair Competition Commission (FCC) to increase its interest in the Nyanzaga Mining Company Limited (NMCL) to 51%.
However, the move remains subject to the approval of the newly established Mining Commission. The application for approval from the Mining Commission was lodged at the same time as the application was lodged at the FCC. The move is also dependent on the payment of $3-million to global investment company Acacia Group.
Ore Corp and Ore Corp Tanzania have also entered into a completion agreement with Acacia Mining and other members of the Acacia Group to allow Ore Corp Tanzania to move to 100% ownership of NMCL and thereby 100% ownership of the Nyanzaga gold project by making a further payment of $7-million. The move to 100% ownership of NMCL is also conditional on the Tanzanian regulatory approvals referred to above and the grant of the special mining licence (SML).
Following completion, Acacia will retain a net smelter return production royalty over the project, capped at $15-million.
Ore Corp believes that a simplified ownership structure of NMCL is beneficial to the future development of the project and would enable it to be best placed to provide significant benefits to Tanzania and all stakeholders.
Nyanzaga hosts a Joint Ore Reserves Comittee-compliant mineral resource estimate (MRE) of 3.1-million ounce at 4.0 g/t gold. The MRE is the foundation of a definitive feasibility study (DFS) for project financing purposes currently under way. The SML application has been lodged and is anticipated to progress through the application process following the formation of the Mining Commission.
The granting of the SML will be required before the project financing DFS is completed and any financing for the construction of the project can be undertaken. Upon grant of the SML, the Tanzania government will become an equity holder in the project, acquiring a free-carried interest of not less than 16% in NMCL in accordance with the Tanzanian Mining Act. Ore Corp is looking forward to the opportunity to develop Tanzania’s next large-scale gold mine with the Tanzania government, for the benefit of all stakeholders.