Settlement for Lemur Resources' Mining licence

RNS Number : 0686B

Bushveld Minerals Limited

14 June 2016

 

14 June 2016

Bushveld Minerals Limited

("Bushveld" or the "Company")

Settlement reached for Lemur Resources' Mining licence 4578

Bushveld Minerals Limited (AIM: BMN), a mineral development company with a portfolio of vanadium and titanium-bearing iron ore, tin and coal assets in Southern Africa, is pleased to announce that its wholly owned subsidiary, Lemur Resources, has reached a settlement (the "Settlement") with Madam Rahajasoamampionona Ramiaramanana ("The Claimant") in respect of mining licence 4578 within its Imaloto Power Project coal concession in Madagascar (the "Project").

Under the terms of the settlement agreement signed between Lemur Resources Limited's Madagascar operating entity, Coal Mining Madagascar S.A and the Claimant, the Claimant has irrevocably undertaken to give up all claims pertaining to the mining licence 4578. Simultaneously, both parties have agreed to immediately cease all legal processes, including applications or appeals previously lodged with the Madagascar judicial system.

This settlement puts an end the long running legal case in respect of mining licence 4578. In addition to reaffirming Lemur's ownership rights over the permit, the settlement also confirms Lemurs longstanding belief in Madgascar as an emerging investment destination in Southern Africa.

The Company maintains its development approach for the Project: to secure a power purchase agreement with the state owned water and utility company (JIRAMA) that would pave the way for its economic realisation. The Project has a measured and indicated resource of 136 million tonnes of coal and has completed a pre-feasibility study on the viability of generating power and transmitting the power to the surrounding areas and the strategic port town of Tulear. There are also a number of emerging mining projects in the area that could benefit from an efficient base load power source provided by the Project.

This development also comes at a time when Madagascar re-enters the international investment domain after a transitional period. The IMF has recently provided Madagascar with an extended credit facility arrangement. Among other intentions, the credit arrangement is aimed at reforming JIRAMA into an efficient enterprise capable of expanding its power generating capabilites and power mix for the country.

Bushveld Minerals CEO, Fortune Mojapelo, said:

"We welcome the Settlement, which confirms Lemur Resources' ownership of mining permit No. 4578, an important part of the Imaloto coal project. The settlement paves the way for Lemur to take forward the development of its Imaloto Coal and power projects. Key to this development is the Power Purchase Agreement over which the Company is in negotiations with the Madagascar authorities. The agreement will allow the next stage in the development of the Imaloto project to be implemented as an integrated mine to power and transmission project, providing a captive market for its coal resource and unlocking the intrinsic value in the underlying project."

Enquiries: [e-mail] 

Bushveld Minerals Fortune Mojapelo	[phone]
Strand Hanson Limited Andrew Emmott	[phone]
Mirabaud Securities LLP Rory Scott	[phone]
Brandon Hill Capital Oliver Stansfield Beaufort Securities Limited Jon Belliss	[phone] [phone]
Tavistock (UK) Jos Simson/ Nuala Gallagher	[phone]
‎Lifa Communications (South Africa) Gabriella von Ille	[phone]

Notes to Editors

Bushveld Minerals Limited is a mineral development company with a portfolio of vanadium-and titanium bearing iron ore, tin and coal assets in Southern Africa and Madagascar.

The Group owns the Bushveld Vanadium Project, Mokopane Vanadium Project, Bushveld Iron Ore Project and Mokopane Tin Project, located on the northern limb of the Bushveld Complex, South Africa. Bushveld also owns the Imaloto coal project in Madagascar, acquired in September, 2015, through its takeover of Lemur Resources.

Bushveld was admitted to the AIM of the London Stock Exchange in March 2012.

 

END

 

 

MSCBCGDLCBBBGLX