Africa-focused battery metals investment and exploration company Marula Mining has amended the terms of its agreement with Tanzanian mining company Takela Mining Tanzania to increase its interest in the ten granted mining licences that make up the Kinusi copper project, in the Mpwapwa district in the Dodoma region of central Tanzania.
The $550 000 increase in Marula’s stake in the licences – which cover 91 ha with eight of the licences being contiguous – lifts the miner’s overall interest from 49% to 75%, with the cash payments comprising staged equity payments and being subject to certain milestones being achieved.
Marula says its investment into Kinusi is in line with its battery metals focus and strategy in identifying opportunities which are considered high-grade and with the potential to be near-term production and cash flow generating projects.
Marula CEO Jason Brewer says that, with copper prices at current high levels of about $9 000/t, and demand expected to increase owing to its use in green technologies – such as electric vehicles and the associated infrastructure – Marula finds itself well positioned with its majority position now secured at the Kinusi copper project.
Marula will make an initial payment of $150 000, comprising of $50 000 in cash and $100 000 through the issue of 1.12-million shares at a price of 7.5 pence, which are subject to a voluntary 12-month lock-up provision.
Three further share-based payments will be issued to Takela based on the 30-day volume weighted average price a share at the time of issue and subject to the achievement of key technical milestones.
These milestones include $100 000 in shares to be issued on completion of the initial exploration programme, another $100 000 in shares to be issued on completion of resource definition drilling and release of a Joint Ore Reserves Committee-compliant resource statement.
A further $200 000 in shares will be issued when a decision to start mining has been reached by Marula.
The decision to increase Marula’s commercial interest in the Kinusi project follows recent site visits by the company’s board, which confirmed the high-grade copper mineralisation and potential that the directors believe exists there, particularly with the identification of 30 additional surface exposures of copper mineralisation across the project area in the previous quarter.
Previous samples reported by Marula of copper ore mined from the small-scale activities on site, and azurite and malachite copper mineralisation exposed in shallow pits and shafts, has been tested using hand-held X-ray fluorescence, revealing copper grades of 7.28%, 19.2% and 31.32%.
Further, Marula reports that work by experienced Tanzanian geological and mining consultancy group Geofields Tanzania is due to start shortly and be completed in the second quarter.