/ MEDIA STATEMENT / This content is not written by Creamer Media, but is a supplied media statement.
LSE- and ASX-listed Pensana Rare Earths will dispose of its responsibilities in the Miyabi exploration gold project, in Tanzania, with immediate effect, through private company Drillcraft.
Drillcraft is based in Mauritius and has an established operational base in Tanzania.
The transaction will comprise the receipt of net cash proceeds by Pensana of about $400 000 payable alongside a five-year, 2% royalty participation agreement over the existing mineral resource estimate of about 500 000 oz of gold, with operations forecast to start in mid-2021.
Pensana chairperson Paul Atherley says the transaction at Miyabi allows the company to “focus fully on bringing online the first major rare earth mine in over a decade”.
The mine is set to meet the “burgeoning demand” for magnet metals in electric vehicles and wind turbines.