Shaw River ups stake in Namibia manganese project
PERTH (miningweekly.com) – Junior miner Shaw River Manganese said on Monday that it had increased its shareholding in the Otjozondu manganese project, in Namibia, from 75.5% to 84%.
The project’s minority shareholder, Oreport Holdings, has since 2011 elected not to fund its share of the project costs, and has now relinquished its rights to participate in the issue of new ordinary no-par value shares in the project’s holding company, Otjozondu Mining. As a result, Shaw River’s interest in the project has increased.
The company said that it planned to fund all forward expenditure at the manganese project by equity subscription through pro-rata offers of equity from the holding company.
Should Oreport not participate on future pro-rata offers, Shaw River would have the opportunity to further increase its interest in the holding company and the project.
“We believe the Otjo manganese project has the potential to be a lucrative operation for the company. Increasing our interest to 84% is a strong step forward for Shaw River,” said MD Peter Benjamin.
The project currently has a mineral resource of some 17-million tonnes, grading 22.5% manganese.
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