By Petronel Smit
The resources company, which acquired the Bushveld Resources stake through its fully-owned subsidiary Bendell Enterprises, would pay $11,5-million in cash and shares.
Obtala also raised £6-million through the subscription of 12-million new ordinary shares at a price of 50p a share. Dealings on Aim were expected to start on March 10.
After the acquisition, Bendell would be an equal shareholder in Bushveld Resources with Mineral Wealth International.
Contractors BRL Geologists had identified potential for two-billion tons of iron-ore to be mined at the Mokopane deposit, in Limpopo, as well as magnetite hosted iron-ore deposit with vanadium and titanium
There were also favourable host rocks for iron mineralisation, with several potentially economic magnetite seams, traced over 10 km. The two main seams were well developed with thicknesses of 70 m and 8 m.
Chairperson Frank Scolaro said that the iron-ore deposit was located in one of the most advanced mining regions in the world.
“Obtala sees the Mokopane project as having the potential to become a significant iron mine that can deliver its end products to customers from in a country that already has an advanced infrastructure framework established for the natural resource industry,” he noted.
He added that the company’s aim was to rapidly delineate the deposit and the recently acquired Greenhill tin project, into economical mines. Obtala remained fully funded and debt free with a strong cash balance.
Over the next 18 months, the Bushveld Resources programme would focus on an extensive drilling programme to establish an inferred/indicated resource and to investigate the potential of weathered and alluvial resources, as well as beneficiation testwork.
A prefeasibility study to determine mining and metallurgical methods and the costs thereof were also planned for the next two years. Edited by: Mariaan Webb