Mvela poised to become major platinum producer

[G-khan]

In line with its strategy to become a major producer of platinum-group elements (PGEs), Mvela Resources has announced that it is in negotiations for the acquisition of a 50% joint venture interest in a significant PGE resource on the eastern limb of the Bushveld Igneous Complex.

The measured, indicated and inferred, attributable resource on the UG2 horizon exceeds 35-million ounces (3 PGE + Au).

The proposed acquisition has received approval in principle from the South African Department of Minerals and Energy.

The move follows the withdrawal of a cautionary notice by platinum producer Northam Platinum, which was believed to have been in discussions for the acquisition of the same resource, as part of an expansion strategy.

Mvela Resources also holds a 22,4% equity stake in Northam Platinum and a 50% joint venture interest with SouthernEra Resources in the Dwaalkop properties on the western extension to the eastern limb.

The measured, indicated and inferred, attributable resource on the UG2 on the Dwaalkop properties is 3,9-million ounces (3 PGE + Au).

Corporate advisors to Mvela Resources are evaluating the options for the consolidation of all Mvela Resources’ PGE assets in a platinum empowerment vehicle, under Mvela Resources’ control.

A further announcement will be made as soon as the current negotiations have been concluded.

In the meantime, shareholders are advised to exercise caution in their dealings in the securities of Mvela Resources.

The cautionary announcement dated October 8 regarding the acquisition of 15% of the South African mining assets of Gold Fields Limited remains in force.

http://www.miningweekly.co.za/min/ne...ng/?show=43485