PERTH (miningweekly.com) – Minerals explorer Kasbah Resources has welcomed a capital injection of A$7.25-million after reaching an agreement to sell a 5% interest in the Achmmach tin project, in Morocco, to Japan’s Nittetsu Mining Company.
Under the terms of a memorandum of understanding, Nittetsu would pay the cash settlement for a 5% interest in the joint venture entity that would develop the Achmmach project.
The Japanese firm would also be entitled to a minimum 5% of the tin production from the project, on mutually agreed market terms.
“Nittetsu Mining’s entry into the Achmmach tin project is a significant step for Kasbah as it brings yet another strong financial and technical group to the project to assist with project financing and development,” said nonexecutive chairperson Rod Marston.
“Most importantly, the entry of Nittetsu Mining strengthens our cash position, introduces further mining expertise and reduces our future funding requirements.”
A 2012 prefeasibility study into the Achmmach project found that a capital investment of some $167-million would be required to support a one-million-tonne-a-year operation. The project would have an initial life-of-mine of 6.6 years, based on a mineral resource of some 14.6-million tons, at 0.9% tin.