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Shaw River Manganese (ASX: SRR) has entered into a binding term sheet to acquire the remaining 12.8% of Otjozondu Mining, giving it a 100% interest in the Otjozondu Manganese Project in Namibia.
This increases the company’s ability to secure a project partner for development, decreases complexity of ownership and decreases administration costs.
The company will pay joint venture partner Oreport Holdings $950,000 for the stake.
In addition, Shaw River will continue to discuss opportunities for Grindrod – the parent of Oreport - to provide logistical services to the Otjo Project.
The historical marketing agreement with Oreport will be terminated as part the deal, leaving the company with full flexibility to enter into a future transaction involving the off‐take and/or marketing rights for its product.
Shaw River had earlier this month completed the “Pit A” blast‐hole‐drilling and sampling program at the project.
This is the first of five areas to be tested to identify “at surface manganese lode” for the basis of a start‐up inventory for mining and subsequent processing to underpin the Start Up Production Plan.
Results from Pit A have outlined two zones of manganese mineralisation, at surface, for a combined tonnage of about 20,400 tonnes.
This material is considered suitable as a bulk sample to test the performance of the surface mineralisation associated with the Labusrus Indicated Mineral Resource.
The Start Up Production Plan is targeting a low capital, staged, development option for the project which would see operations commencing within six months of the order of the process plant.
Shaw River is also seeking a strategic cornerstone funding partner to provide funding to implement this plan and to provide financial support to the company.
Otjo has a 17 million tonne resource with significant exploration upside, located in a region that has exported high grade manganese for over 50 years.