JOHANNESBURG (miningweekly.com) – ASX-listed Kasbah Resources has signed an exploration farm-in agreement with the wholly owned Ugandan subsidiaries of Australian Starfield Metals, for the 96 km2 Kikagati tin project, in south-western Uganda.
Under the terms of the memorandum of understanding, Kasbah had an exclusive option to farm-in to the Kikagati project, and could earn up to a 51% interest on the completion of certain milestones.
The payment of a A$100 000 fee would give Kasbah an exclusive six-month period to conduct due diligence, after which the company could, through the payment of a further A$150 000 option fee, secure an additional six-month exclusivity period to extend due diligence investigations into the licences.
Should Kasbah choose to continue after this 12-month period, it could earn a 30% interest in the licences by sole funding exploration expenditure to a minimum of A$500 000 within a 12-month period.
Further, on Kasbah’s election, it could earn an additional 21%, which would take its total interest to 51%, by sole funding additional exploration expenditure to a minimum of A$500 000.
“This is a low-cost entry into a prospective tin field. The exploration potential of these licences in south-western Uganda is exciting and, in common with our Moroccan licences, this package of licences is within an underexplored tin belt with tin production history,” Kasbah MD Wayne Bramwell said.
He emphasised that, the Achmmach tin project, in Morocco, remained the company’s main focus; however, as this project was now moving through the project financing stage, Kasbah’s exploration manager could be deployed to review new tin opportunities.
“Kasbah looks forward to working collaboratively with Starfield’s Ugandan operating team to advance the systematic exploration for tin in south-western Uganda,” he said.