PERTH (miningweekly.com) – The Tanzanian Fair Competition Commission has backed ASX-listed OreCorp’s plans to gain a majority interest in the Nyanzaga gold project.
OreCorp in July this year exercised its option to gain a 51% interest in the gold project after gaining an initial 25% interest in the project by spending $14-million on completing a prefeasibility study (PFS), and additional feasibility study related work.
OreCorp was hoping to acquire a further 26% interest in the project from partner Acacia Mining for $3-million.
The transaction was still subject to the approval of the newly established Mining Commission, and the payment of $3-million to Acacia.
OreCorp on Thursday also said that the company had entered into a completion agreement with Acacia to allow the company to move to 100% ownership of the holding company for the Nyanzaga project, for a further $7-million payment.
The move to full ownership of the Nyanzaga project is also conditional on Tanzanian regulatory approvals, and the grant of the special mining licence for the project.
Following the completion of the transaction, Acacia will retain a net smelter return production royalty, capped at $15-million.
OreCorp told shareholders that a simplified ownership structure for the gold project would be beneficial to the project’s future development, and would enable it to be best placed to provide significant benefits to Tanzania and all stakeholders.
The Nyanzaga project is currently estimated to host a mineral resource of 3.1-million ounces, grading 4 g/t gold.
A 2017 PFS estimated that the project could produce 213 000 oz/y over a 12-year mine life, with preproduction costs estimated at $287-million and all-in sustaining costs at $838/oz.