Tawana Resources NL (ASX:TAW) has entered into an agreement to acquire the mining rights to the Uis pegmatite tailings stockpile in Namibia.
The Uis Project represents an estimated 20 million tonne of tailings stockpile derived from one of the largest pegmatite tin mines in the world.
Tawana has entered into an agreement to purchase all the shares of a company which has optional mining rights to the Uis pegmatite tailings stockpile.
The consideration for the transaction is $100,000 in cash and up to 15 million shares in Tawana if a decision to mine is taken.
Tawana will also need to pay US$1,875,000 on a staged basis to the owners of the mine before commencing production, along with a 5% net profit interest royalty.
The stockpiles at Uis comprise pegmatite material that was mined by open cut, hauled to a processing plant where the ore was crushed and tin concentrate was extracted by gravity.
The pegmatites contained significant quantities of tantalum minerals, much of which is believed to remain in the stockpile.
Significantly, no mining is required at the project, which normally represents 30-60% of the operating cost of a mine.
Namibia is a mining friendly jurisdiction which is ranked fourth in Africa on the 2015 Investment Attractiveness Index by the Fraser Institute.
An air core rig is expected to arrive on site in October 2016, with 21 deep holes and 45 shallow holes planned, totalling about 1500 metres.
Tawana’s share price has increased by 233% during the past three months, last trading at $0.11.
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