Tanzania

  • African Battery secures option to buy stake in Tanzania nickel project (ABM, KAT)

    African Battery Metals (LSE:ABM) sat at 0.4p on Friday after securing an option to acquire a stake in a Tanzania-based nickel project. The firm has entered an option agreement with AIM-listed exploration and development company Katoro Gold (LSE:KAT). This gives it the right to purchase a 25pc position in Katoro’s Haneti project as well as a stake in Katoro itself.

    Haneti comprises tenements that cover around 5,000km2 and are prospective for nickel, platinum group elements, cobalt, copper, gold, and lithium. Around $1.5m worth of work has been carried out at the project to date, identifying grades of up to 13.6pc nickel.

    Katoro believes that Haneti could host a chonolith type nickel sulphide deposit and is principally targeting a prospect called Mihanza Hill. It is currently carrying out a 2019 work programme to determine whether disseminated or massive sulphide mineralisation is present.

    Under the terms of its agreement, African Battery has acquired an initial £25,000 worth of Katoro shares at 1p each.  Each of these shares comes with a three-year warrant that is exercisable at 1.25p. This also gives the business exposure to Katoro’s other asset, which includes the Imweru and Lubando gold projects in Tanzania. Together, these host a JORC compliant gold resource 754,980oz gold.

    Following this initial purchase, African Battery has been granted a 60-day option, giving it time to carry out due diligence on Katoro’s projects, with a particular focus on Haneti. If the business decides to exercise this option, it will acquire around £75,000 worth of shares with warrants attached.

    It will also acquire a 25pc stake in Haneti, through Katoro’s subsidiary Kibo Nickel.  In this scenario, it will be required to fund a 25pc share of Haneti’s costs. Finally, African Battery will have the option to acquire a further 10pc position in Haneti for £25,000 a year on from the day it exercises its option.

    African Battery’s exec director Paul Johnson said Friday’s deal complements the firm’s existing interests and provides it with some diversification without diverting its focus away from Africa and battery metal projects.

    ‘Alongside our existing copper and cobalt interests, the addition of nickel into our portfolio exposes our shareholders to another strategically significant metal where we believe the forward supply/demand dynamics are looking highly attractive,’he said.

    ‘We are looking to work with Katoro on an accelerated exploration programme at Haneti to build on the knowledge that Katoro, and previous owner Kibo Mining plc, gathered.  This includes data demonstrating 13.59% nickel in sampling of outcrops. We look forward to reporting back on developments in respect of this strategic transaction in the near future.’

    Friday’s update comes after African Battery announced that it had returned from the first stage of its strategic and operational review with a ‘robust financial position’.

    The exploration player was suspended from trading in December as demands from short-term creditors exceeded available working capital. However, it was re-admitted to the market last month days after shareholders voted in favour of a host of proposals aimed and restructuring the business. This included a conditional placing and subscription to raise £1m at 0.5p a share and help pay off creditors.

    In an update, African Battery said it has now paid all material creditor balances through either cash or share settlements. It now has no material debt and free working capital of around £860,000. It believes this figure will cover corporate plc costs, anticipated project exploration, and expenditure on existing interests for 12 months.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    The article expresses the views of the Author solely and does not necessarily express the views of MiningMaven.com and Catalyst Information Services Ltd or their connected parties who are not responsible for its content or accuracy

    News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance. Readers are recommended to seek the advice of appropriate professionals when considering investments in small capital.

  • Armadale on track to deliver Mahenge Liandu DFS in current quarter (ACP)

    Armadale Capital(LSE:ACP) has reiterated its intention to deliver a definitive feasibility study (“DFS”) for its Mahenge Liandu graphite project in the current quarter.

    Based in south-east Tanzania, Mahenge Liandu contains one of the country’s most substantial high-grade graphite resources, with high-grade coarse flakes and near-surface mineralisation contained within one ore body. Armadale is currently completing a DFS based on the results of a scoping study centred around a 400,000tpa throughput ratio. This put Mahenge Liandu’s net present value at $349 million and its pre-tax internal rate of at 122% against development capital expenditure of just $35 million, implying an after-tax payback period of 1.2 years.

    In Friday’s update, Armadale said the DFS ramps up to 1 million tonnes per annum throughput after four years and will initially target high-grade, near-surface graphite mineralisation for production to maximise value. Meanwhile, it said metallurgical test-work is being completed on high-grade composites with average grades of 14.9% and 15.6% total graphitic carbon to confirm the project flowsheet is suited to high-grade ore. Likewise, site locations for all elements of the project have been finalised, an access road has been marked out, and logistics have been costed out with a local well-established Tanzanian contractor.

    Beyond the DFS, Armadale said that its director Steve Mahede is confident that developing mining projects through to production is a major priority for Tanzania’s government following a recent meeting with officials. Finally, the organisation said it was beginning to advance post-DFS work programmes focused on road access, production bores, and – critically – commercialisation and project funding discussions with potential partners.

    The company’s chairman, Nick Johansen, said: “With one of the largest high-grade resources in Tanzania this dovetails perfectly with our ongoing commitment to push the envelope to transform into an emerging producer by H1 2021.

    “In support of this, refinements to our resource modelling and mine plan from the scoping study have increased our confidence that the project is going to be a low cost, long life operation.

    “We look forward to sharing these key value metrics within the next month as we finalise the DFS, results for which we know are eagerly anticipated. I would like to thank shareholders for their patience in this regard and give my assurance that finalising this study is our primary objective. We will then look to accelerate commercialisation and funding initiatives with our partners to ensure we remain on track with our fast-paced growth plans.”

    As we have previously written, the scoping study at Mahenge Liandu was based around a conservative $1,272 per tonne graphite price and an average concentrate purity of 95%.  Graphite prices are currently sitting much higher than this, and Mahenge Liandu is proven to be able to produce the material consistently at a grade considerably higher than 95%. Last year, we looked at whether investors were missing a significant opportunity at Armadale given this conservative approach.

    As we highlighted, Australian miner Black Rock recently agreed to supply “premium” graphite with a nominal grade of between 97.5-98.5% for $1,490 a tonne and “ultra” graphite grading more than 99% for $2,161/t.   Both of these prices come in at a significant premium to the $1,272/t used by Armadale in the scoping study for Mahenge Liandu, which neighbours and shares many similarities with Black Rock’s Mahenge asset.  f Armadale can secure binding sales agreements at a much higher price than $1,272, then Mahenge Liandu’s fundamentals would be enhanced even further.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article’s content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

     

  • Power Metal reveals lithium prospectivity at key project in Tanzania (POW)

    Power Metal Resources (LSE:POW) rose 1.8p on Tuesday after announcing signs of lithium prospectivity at its part-owned Haneti project in Tanzania. The firm, which owns a 25pc position in Haneti alongside Katoro Gold (LSE:KAT), said regional exploration reconnaissance at the identified several pegmatite outcrops included within two abandoned artisanal pits.

    The pegmatites, appear to intrude along the sheared contact between granite gneisses and serpentinised ultramafic rocks, consist of corase quartz, lepidolite, and red and black tourmaline. Critically, Lepidolite contains significant amounts of lithium and may indicate the presence of useful lithium minerals like spodumene and petalite. Meanwhile, Power Metal said the pegmatites can also prove prospective for rare earth elements and other saleable minerals like tantalite-columbite.

    Further work will be completed in the area following these early signs of prospectivity, with Katoro already applying for five additional licences in the areas coverin the zones of interest. Meanwhile, Power Metal and Katoro are constructing a work programme that may include a regional desktop study, detailed field mapping and geochemical analysis. The aim of this work will be to identify any lithium-bearing minerals and the extent of any mineralisation identified.

    Paul Johnson, executive director at Power Metal, said he was excited by the news as the firm’s original interest in Haneti had stemmed from its large-scale nickel sulphide targets. An upcoming drill programme will be undertaken to test those targets.

    ‘Having lithium, and potentially rare earth element, prospectivity at Haneti is also very interesting and adds to the excitement and potential of the Haneti Project for the project partners; and shareholders of both POW and Katoro alike,’ he added. ‘I look forward to reporting further in respect of these additional exploration activities being undertaken at Haneti.’

    Power Metal established a joint venture with Katoro over Haneti earlier this year, and the former has the option to increase its position in the project to 35pc by paying the latter £25,000 in cash by 15 May 2020. The asset sits alongside Power Metal’s broader portfolio of projects centred around the key metals used in power generation, transmission, storage, and utilisation. This includes assets in the DRC, Cameroon, Cote d’Ivoire, and Botswana.

    To read our recent report on Power Metal’s interests in Botswana, including exclusive quotes from Johnson, please click here.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance 

     

     

  • VIDEO: Re-visit Matt Bull's update on Armadale Capital’s progress at Mahenge Liandu in exclusive presentation (ACP)

    Towards the end of October, Ben Turney from our sister site ValueTheMarkets hosted Armadale Capital’s (LSE:ACP) technical director Matt Bull in a recorded presentation and interview. Bull provided a comprehensive update on the firm’s progress at its wholly-owned Mahenge Liandu graphite project in Tanzania, where it is currently completing a feasibility study.

    Among the topics covered were the project’s market-leading graphite purity and flake size and Armadale’s ongoing progress in securing offtake agreements and financing for its development. Elsewhere, Bull provided an update on the increasing demand for graphite globally against a backdrop of shrinking supply from China as the country tightens its environmental controls.

    He also argued that the economic fundamentals currently used at Mahenge Liandu are looking increasingly conservative given the attractive offtake deals recently secured by several of Armdale’s peers at their projects. This was a point recently highlighted in MiningMaven’s detailed report on the business, which can be read here.

    During the presentation, Bull also took questions from shareholders. These focused on numerous subjects, including the firm’s intention to hire a CEO, its plans for communicating its message, and the positive impact that recent progress could have on Mahenge Liandu’s economics.

    For a full recording of the presentation, please see below:

    Armadale Capital - Online Presentation and Q&A Session - 25/10/2019 from ValueTheMarkets.com on Vimeo.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article’s content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance