Neighbouring subsidiaries of London-based Baobab Resources and Australian explorer Metals of Africa (MTA) have signed a joint venture agreement to develop the Changara project in Mozambique’s Tete province.

Capitol Resources and Afriminas Minerais hold adjacent exploration licences in the area and have agreed on a four-year, three-stage investment structure in the joint venture. The companies anticipate the JV will fast-track exploration of the highly prospective project area. Previous work at the site by Baobab has identified numerous lead, zinc, silver and manganese targets.

Baobab’s Changara project exploration licences cover 525sqkm and are contiguous with Metals of Africa’s 825sqkm Rio Mazoe project tenure.

Baobab’s managing director Ben James says, “By combining Baobab’s and Metals of Africa’s tenure in the Changara area, the entire extent of the highly prospective Rushinga belt can now be more efficiently and effectively explored. Metals of Africa’s management team has extensive corporate and technical operating experience in southern Africa and we look forward to working with them in developing this exciting corner of Mozambique.“

He says the structure of the agreement will allow Baobab to retain a significant interest in the Changara project going forward, while also enabling the company consolidate its efforts on the Tete pig iron project where the pre-feasibility study is nearing completion.

The JV is awaiting shareholder approval. It outlines a two-stage investment of US$750,000 from MTA to earn a 55% share of the project, with the option of funding a third stage at US$1.2 million to earn an 80% interest. Baobab has the option to co-fund the third stage work program on a pro-rata basis to maintain its 45% interest in Changara.

www.baobabresources.com

Resource Center Whitepapers, Videos, Case Studies

Conferences & Events

No events