22 May 2013

Junior developer, Impact Minerals has sold off four of its non-core prospecting licences in the northern part of its Botswana uranium project.

The company announced on its website on May 16 that it had entered into a sale and purchase agreement with Sechaba Natural Resources Pty Ltd and Shumba Coal Ltd. 

The four licences, it said, were PL118/2008, PL120/2008, PL121/2008 and PL097/2010  which would be transferred to Sechaba for a total of US$ 800 000 (over P6.7m), consisting of US$250 000 (about P2.1m) cash and Consideration Shares equal to US$550 000 (over P4.6m) in Shumba, a company listed on the Botswana Stock Exchange.

Impact Mineral’s managing director, Dr Mike Jones said that the sale of these four non-core assets was an excellent outcome for Impact and was part of their exploration strategy to focus on the discovery of high grade uranium deposits hosted by Proterozoic sedimentary and basement rocks similar to those in the Athabasca Basin in Canada and the Pine Creek Geosyncline in Australia.

He noted that the proceeds from the sale would further strengthen the company’s working capital position, and would be put towards the progression of exploration activities at the Red Hills Prospect. The sale is subject to successful renewal of the prospecting rights and ministerial approval.

The company noted that US$50 000 (about P420 344) cash would be payable upon execution of the sale and purchase agreement, while another US$ 50 000 (about P420 344) cash would be payable upon the renewal of the prospecting rights which was expected within four months.

It further explained that US$ 150 000  (over P1 261 000) cash and US$ 550 000 (over P4.6m) in shares in Shumba Coal would be payable upon the mines minister approving the transfer of the prospecting rights which was expected to happen within six months.

The Botswana Uranium Project comprises an extensive area of about 22,000sq km of prospecting licences and applications that cover 250 km of the strike extensions of rocks that host many significant uranium deposits throughout Southern Africa, including the adjacent uranium deposits owned by A-Cap Resources Ltd at the Letlhakane project.

Work by Impact Minerals has also made four modest uranium discoveries during its 2010 drill programme at Lekobolo, Morolane and Mosolotsane in Karoo rocks and at Moiyabana. ENDS