JSE Securities Exchange-listed Thabex Exploration yesterday announced that the company and its wholly owned subsidiary, Platinexco have entered into an option and sale of shares agreement with AIM Resources, a junior mining company listed on the Australian Stock Exchange.

AIM Resources will conduct a due diligence investigation on the Mokopane Platreef Project.

The Australian company has already entered into a joint venture agreement with a black economic empowerment group, which would facilitate the development in compliance to Thabex’s BEE strategy and the Mining Charter.

The agreement provides for a five-month option period for AIM to conduct a due diligence on the platinum, nickel and copper indicated resource of the project on farm Piet Potgietersrust Town and Townlands 44KS in Limpopo Province. Thabex will receive an option fee of R55 000 a month over the period, escalating in the last two months to R80 000 and R110 000, respectively.

AIM may elect to exercise the option and purchase 100% of Platinexco from Thabex at any time during the option period.

Should this transpire, Thabex stands to receive R20-million in cash as consideration for the purchase price.

Thabex Exploration CEO Marius Welthagen says Thabex will utilise the cash generated by the option payments, as well as the possible exercise of the option, to fund its alluvial diamond exploration activities in Southern Africa.

During the period 1989 to 1992, Thabex explored and evaluated the property extensively.

The results of the feasibility study established open cast (sulphide) Indicated Mineral Resources in the southwest portion of the property.

Says Welthagen: Based on a nickel price of some R20 000/t at the time of the feasibility study, Thabex concluded that the project was not commercially sensible.

However, at today’s nickel price of about R76 000/t, a full scale mining operation may be viable again.

However, Thabex has not been successful in raising the necessary interest to in the Project to warrant a fund raising exercise in the local market and the board therefore considers it prudent to dispose of the project in order to pursue Thabex’s alluvial diamond exploration projects.