Monday, 24 December 2012 12:01
Zambian focused manganese company Kaboko Mining will draw a further $4 million under Tranche A of the $10 million prepayment debt facility and long-term manganese ore off-take agreement with Noble Resources International.
This further draw down is subject to confirmation of licensing conditions in relation to the Northern Manganese Project at Mansa, which Kaboko expects will be satisfied on or before 7 January 2013.
The $4 million to be drawn under the transaction now provides the company with all the forecast funding necessary to complete the mine development and associated plant and equipment purchases at its Northern Manganese Project at Mansa and commence deliveries of high grade manganese ore to Noble.
Northern Manganese Project, Kaboko is progressing the development of its Mansa, Northern Zambian Project. Exploration work completed to date has identified high grade manganese mineralisation in veins typically in excess of 4m wide and strike lengths of over 400m.
Trenching undertaken has also shown that the reef is open-ended towards the NW and SE.
The company is in the process of mobilising equipment and additional personnel to site as well as a simple crushing system and processing plant being designed for installation in Q1 2013.
The proposed advance from Noble will provide the company with funding to reach a run of mine of initially 2500-5000 tonnes per month in Q2 2013 and ramping up to 10,000 tonnes per month by year end.
The company has through its subsidiary Impondo Zambia secured land in the Serenje region on the TAZARA rail line and is currently negotiating participation in the TAZARA rail line.
Impondo Zambia concluded discussions with Mofed Tanzania, a Zambian government owned logistics service provider situated in Dar es Salaam, that will enable Kaboko to utilise available rail and export facilities.
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