JOHANNESBURG (miningweekly.com) – Dual-listed Giyani Gold has signed a letter of intent (LoI) with Menzi Battery Metals to acquire a 70% interest in two past-producing high-grade manganese mines in Zambia.
The Kampumba and Chiwefwe openpit manganese mines were operated between 1954 and 1968 and produced an estimated 360 000 t at grades exceeding 50% manganese.
Under the terms of the LoI, Giyani will pay Menzi $200 000 cash, as well as contribute $1-million to work commitment over five years upon completion of due diligence, title review and the completion of a definitive agreement.
The mines are close to gravel roads and rail, power and labour infrastructure. Geophysical survey data and historical resource estimates indicate significant manganese potential.
Giyani has engaged Boswell Projects as the project manager for its portfolio of assets in Southern Africa. During the effective period of the LoI and subsequent agreements, Boswell will complete a due diligence review of the assets to assess the potential for near-term production from these mines.
This acquisition will expand the company’s portfolio of manganese assets – it already owns manganese assets in Botswana – and continue to advance Giyani’s strategy to acquire raw materials for the growing battery industry.