The Tanzanian government has granted a special mining licence (SML) for the Tajiri minerals sands project, paving the way for emerging critical minerals producer Strandline Resources to progress discussions with potential strategic and offtake partners, including options for joint venture (JV).
The Tajiri SML 731/2024 was issued to Nyati Mineral Sands, ASX-listed Strandline’s JV company with the government of Tanzania, where Strandline holds 84% and the government the remaining 16%.
The issue of the SML completes the transfer and issue of all key tenements to Nyati.
Strandline has further progressed discussions with potential strategic and offtake partners, including options for JV, as it continues its commercialisation plans for its Tanzanian assets.
“This is a very significant milestone and occasion for the Pangani district and for the whole region of Tanga in Tanzania. On behalf of the Strandline and Nyati board, I wish to acknowledge our appreciation for the hard work undertaken by the Nyati team in progressing and finalising the issue of the SML,” Strandline and Nyati MD Jozsef Patarica said on March 21 at a formal handover ceremony in Dodoma, Tanzania.
Under the terms of the SML, Nyati has agreed to become a strategic partner to the government, which will have no less than 16% of the capital of Nyati in the form of a non-dilutable free-carried interest.
The SML confers on Nyati the exclusive right to search for, mine, process, refine, transport and market the heavy minerals or other minerals in and vertically under the mining licence area.
The SML, dated March 19, 2024, is valid for up to 24 years and covers an area of 34 km2.
Under the agreement, Nyati will undertake in-country beneficiation before exporting minerals.