JOHANNESBURG (miningweekly.com) – ASX-listed Lemur Resources, which is majority-owned by South Africa-focused Bushveld Minerals, has signed a binding agreement to acquire a 99.1% stake in Zaaiplaats Mining, which owns the Zaaiplaats tin mining project, from the Brent Trust for R2.5-million or A$276 000.

The Zaaiplaats project, which covers two properties in Limpopo, was previously the site of the second-largest tin mining operation in South Africa. More than 100 000 t of tin was produced from hard-rock mining at the deposit from 1906 to 1989.

During that period, processed tailings had been dumped in a valley adjacent to the mine.

Lemur, which had, thus far, focused on the exploration for coal in Madagascar, told shareholders on Tuesday that studies had indicated that there was potential to remine the Zaaiplaats tailings, which were believed to contain “significant extractable tin”.

The company would explore ways to generate early cash flow from the tin asset and would carry out a detailed evaluation of the tailings dams.

The acquisition would include all rights, interests and title in an existing mining right application, which had been lodged with the Department of Mineral Resources, in respect of the tailings dam.

Meanwhile, Lemur said there was also potential to sell sand and other aggregates from non-tin-bearing zones within the project area, with various options under consideration. This was expected to provide a low-cost entry into production and a potential source of immediate revenue for Lemur.

A mining right was not currently a requirement for the extraction of sand and other aggregate products and Lemur would investigate the extent of future production and licensing requirements.

“We are delighted at this strategic acquisition of the Zaaiplaats asset, as this unlocks short-term value for the company through the potential for early modest cash flows in a highly prospective area.

“This is in line with our strategy to seek potential mineral and asset acquisition opportunities in Africa generally, with a focus on near-term production potential or greenfield exploration projects with potential for significant resource definition,” commented Lemur MD Anthony Viljoen.

Bushveld Minerals, which is led by CEO Fortune Mojapelo, holds a 57.21% stake in Lemur.