Berkeley Minerals Resources (LON:BMR) told investors that the transfer of the mining rights held by Silverlining and Alberg Mining is now in progress following regulatory delays.
Last year, Berkeley exercised options to buy Silverlining Ventures and Alberg Mining, which owns the rights to 703 hectares at Kabwe containing all the residual partly mined or un-mined underground ore bodies remaining at the former Kabwe zinc-lead mine.
Licence transfers have been delayed by a moratorium on transfers by the Zambian government, which has now been lifted, the company announced today.
The transfer of the Large Scale Mining Licence held by Alberg has now been approved by state owned mine operator Zambia Consolidated Copper Mines (ZCCM) and Zambian authorities.
The Zambian Competition and Consumer Protection Council (CCPC) now has to authorise the change of ownership of the mining rights to Berkeley.
Once the approval is granted, which is expected this month, the company will pay US$3 million due by Alberg to ZCCM. This money has already been deposited this money in Zambia.
“(The transfer) will allow us to proceed with final verification of the resources and our planning of the beneficiation processes prior to commencing cash-generating processing and production of the lead, zinc and the other metals still to be exploited at Kabwe,” said chairman of Berkeley Masoud Alikhani.
Shares in Berkeley fell five percent to 4.9 pence in London this morning, valuing the company at £51.9 million.