PERTH (miningweekly.com) – Mineral sands hopeful World Titanium Resources has gone into a trading halt after its joint venture (JV) partner Sichuan Lomon Titanium withdrew from a proposed farm-in of the Ranobe project, in Madagascar.
Under the terms of the proposed farm-in, Lomon would have contributed the first $200-million capital required to develop an 800 000 t/y ilmenite mine at Ranobe, in exchange for a 50% interest in the mining and exploration licences over the site.
Lomon this week told World Titanium Resources that following a recent management change to the ASX-listed company, as well as the recent capital raise, Lomon had decided not to proceed with the commercial arrangements.
Earlier this month, World Titanium announced the appointment of Wayne Malouf as interim CEO to replace Bruce Griffin, as well as a share placement to raise some A$3.25-million by placing 25-million ordinary shares at an issue price of 13c a share.
World Titanium also announced that it would be implementing immediate cost cuts, and would be conducting a review to implement cost reductions throughout the company.
“While Lomon’s decision is disappointing, it has indicated its continued interest in the Madagascar project,” said Malouf.
“World Titanium has informed Lomon that the company is prepared to hold discussions to address any outstanding issues between the parties, including the commercial arrangements of the transaction, with the goal of attempting to complete a JV.”
Malouf added that World Titanium fully intended to develop the Ranobe project, and continued to make progress toward that goal.
The Ranobe project lies within the Toliara Sands project, which has a current mineral resource of 959-million tonnes, grading 6.1% total heavy mineral sands.