Adelaide, Oct 15, 2006 AEST (ABN Newswire) - An Australian investment company last week announced plans to acquire a controlling interest in a South African vanadium project near Xstrata plc's world class operating Rhovan mine.
ASX-listed Verus Investments Limited (VIL) has entered into a conditional agreement to acquire up to a 74% interest in the Vanamin vanadium project for a total cash consideration of $17 million plus the issue of Verus shares and options.
The Vanamin project already has a total JORC compliant mineral resource of 33 million tonnes averaging a high 1.92% vanadium pentoxide.
It is proposed that the remaining 26% be held by [a black empowerment group] which will be Verus' partner in developing the project.
Today's announcement followed the trading halt requested by Sydney-based Verus on Monday which it said was made pending the release of details "in respect of an acquisition to be made by the Company".
Trading in the Company's shares is expected to resume on Monday 16th October.
Verus Chairman, Mr Dean Gallegos, said today that the Vanamin vanadium project was a vanadiferous magnetite-hosted deposit located in a project area of approximately 189 hectares in the world-class Bushveld Igneous Complex near Brits, North West Province, South Africa.
"The project is well located with respect to transport, water and energy infrastructure and potential synergies arise from its close proximity to 2 established vanadium processing operations," he said.
"There is also potential to significantly increase the current high-grade resource estimation."
25-year Mine Life
The Xstrata plc owned Rhovan vanadium mine and processing plant, which reportedly accounts for 9% of world vanadium production, lies six kilometres to the west-south west of the Vanamin Project.
The Vametco vanadium processing facility located 22 kilometres to the east of the Vanamin Project is owned by Stratcor, whicoh also accounts for 9% of world vanadium production.
Mr Gallegos said previous reports had indicated the availability of the JORC compliant Measured and Indicated resources to satisfy a life of mine of at least 25 years.
"There is also potential to significantly increase the current high grade Resource estimate of some 33 Mt @ 1.92% vanadium (V2O5)," he said.
"Verus intends to complete a Bankable Feasibility Study ("BFS") over the next 12 months to commence a mining and beneficiation operation of this advanced high-grade vanadium deposit.
"The Company will utilise experienced South African process and chemical engineers with extensive experience in vanadium process technology and plant operation to fast track this process."
Mr Gallegos said the indicative timetable for the acquisition included the completion of due diligence in November this year, a shareholder meeting for approval early in 2007 and final acquisition in February 2007.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
| ||
|
