Tawana eager to push Mofe Creek project into production
JOHANNESBURG (miningweekly.com) – Iron-ore-focused Tawana Resources continues to advance its flagship Mofe Creek project, in Liberia, noting on Monday that it remained in discussions with potential strategic partners, product offtakers, debt providers and financiers, to facilitate its development.
The company added in an interim results statement for the half-year ended June 30, that engagements with operating and developing iron-ore companies within Liberia, on potential co-sharing arrangements for the use of existing or proposed infrastructure, had been initiated.
Updating the market on the progress of the project over the six months, Tawana reiterated that a scoping study for Mofe Creek had demonstrated the potential for a low capital expenditure, low-cost, high-margin operation with strong net present value and internal rate of return.
Key results for the first stage of development confirmed that a production rate of between 1.2-million and 1.5-million tons a year could be sustained for “minimal” start-up capital of $53-million, with a bottom-quartile operating cost of $43/t.
To further advance development of the project, Tawana initiated a prefeasibility study in July, while an application for a pilot mining and bulk sample extraction licence had been submitted to the Ministry of Lands, Mines and Energy.
“Meetings have been undertaken with the respective Ministers, Ministries, governmental officers, senators and the National Investment Committee to start the approval process for a Mineral Development Agreement for Mofe Creek,” the company said.
Discussions with the National Port Authority of Liberia on the optimal location for a transshipment or direct shiploading wharf near the project site were also ongoing.
Meanwhile, in April, a placement to investment funds and sophisticated investors to raise $5-million was completed, while a further $346 783 was raised by way of a share purchase plan.
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