THE BOURSE WHISPERER: Nimrodel Resources (ASX:NMR) has acquired a second copper deal in Tanzania, executing its second Heads of Agreement in as many weeks, this time for the right to acquire an 85 per cent interest in a contiguous grouping of 54 Primary Mining Licences (PML’s) in the copper mining area of Kigoma in western Tanzania.
“The extension of our copper holdings in the Kigoma region and the option to explore and acquire these PML’s, which are already held under mining licence and are ready for consolidation into a Mining Licence (ML) establishes the platform upon which we can build a significant regional presence.” Nimrodel Resources managing director Allan Mulligan said in the company’s announcement to the Australian Securities Exchange.
“Our legal entry, right into the heart of the artisanal mining area, will fast track the exploration program providing ready-to-go drill targets.”
General location of 54 adjoining PMLs. Source: Company announcement
Nimrodel explained that, according to Tanzanian mining law, a Primary Mining Licence may not exceed more than 10 hectares (0.1sqkm) in area but holders may accumulate them into larger groupings which can then be converted into Mining Licences (ML’s) by application and with the submission of a suitable environmental impact report.
“Our strategy is one of consolidating these small holdings and it is our intention to accumulate contiguous PML’s until there are enough to sustain reasonable sized mining operations,” Mulligan said.
The company said under the terms of this Heads of Agreement it has free right to terminate the deal at any time.
Nimrodel is to pay $43,200 for a one year option to explore the entire group of PML’s and $50,000 to explore in year two.
Nimrodel has the option to purchase 85 per cent of the mineral rights within the PML’s at any time for a once off $350,000 payment.
The free-carry arrangement expires after two years of exploration.
“Our model for working with PML holders is constructive and collaborative,” Mulligan said.
“PML’s will be accumulated in suitable target areas under special arrangement with the holders.
“As soon as prospectivity has been established, we will move to consolidate and convert the PML’s to Mining Licences, at which time the in-country partner will have the option of retaining the minor equity and contributing further or commercialising the asset through a sale of the minority equity to the company.”