JOHANNESBURG (miningweekly.com) - Mineral processing company BMR Group has made the final payment due to Zambia-based Bushbuck Resources, in order to complete the acquisition of prospecting licence 19653, better known as the Star Zinc project.
As a result, Bushbuck no longer has any charge over either the removable assets of BMR's wholly-owned subsidiary Enviro Processing, which owns all of the assets at BMR's principal operations in Kabwe, bar the property, or $570 000 of new ordinary shares of BMR at a discount of 25% to the prevailing market price.
Further, BMR said Galileo Resources has fulfilled its obligation to undertake a $250 000 work programme, in respect of which it has placed $100 000 in escrow, which will entitle it, upon regulatory approval in Zambia, to increase its aggregate equity interest in Star Zinc to 85%.
BMR has determined not to exercise its right to reduce Galileo's interest in Star Zinc from 85% to 75% and, accordingly, the $100 000 placed in escrow by Galileo will be released to BMR.
Meanwhile, BMR noted that, following meetings between BMR and officials of the Zambian Mining Ministry and Mining Cadastre, preparation of the company's appeal against the notice of cancellation, announced on February 7, is well advanced.
The formal appeal is expected to be submitted by no later than March 2.