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VERITY RESOURCES LIMITED — Capital/Financing Update 2014
Jan 21, 2014
66020_rns_2014-01-21_acc5eb19-c89f-4def-b055-4205b5662379.pdf
Capital/Financing Update
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ABN 96 122 995 073
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ASX Code: BML
TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED DATE: 22 JANUARY 2014
BCL SIGNS AMENDED FARM-IN JOINT VENTURE AGREEMENT
The Board of Botswana Metals Limited (“the Company”) is pleased to announce that BCL Investments Limited (“BCL”) has executed the revised Farm-In Joint Venture Agreement with the new condition precedent that the Department of Mines in Botswana (“DOM”) grants extensions to PL 110/94, PL 111/94 and PL 54/98 (“the PLs”).
The Company has made three base metal discoveries within the PLs: Maibele North (nickel, copper and platinum group elements), Airstrip Copper (copper and silver) and Dibete (copper and silver). A total of 23 VTEM base and precious metal anomalies have been identified to the east of the discoveries.
Under the Farm-In Joint Venture Agreement, BCL can spend US$4M on drilling and exploration to earn a 40% interest in the PLs. BCL then has the option to continue to fund the projects to the completion of a Bankable Feasibility Study to earn a 70% interest. At that point BCL will have the off-take rights at commercial prices, to any ore mined. BCL also has a first right of refusal to participate in exploration on the Company’s other prospecting licences in Botswana.
The Company’s Chairman, Mr Pat Volpe, said that he believes the agreement with BCL, subject to satisfaction of the condition precedent, could substantially benefit the Company and its shareholders. The BCL group has been operating a nickel, copper and platinum group elements mine and smelter facility at Selebi Phikwe since the 1970s. Both operations are only 55km to the southwest of the PLs.
The economics of bringing these potential projects to production will be significantly enhanced by the fact that the BCL group mining and smelting facilities are already in existence and logistically close enough for ore to be trucked to the Selebi Phikwe site.
BCL and the Company have recently been working together to prepare an exploration plan and are ready to commence exploration should the extensions to the PLs be granted by the DOM.
Further progress of the joint venture is dependent upon the DOM granting an extension of the PLs and there can be no guarantee that this will occur. The decision whether or not to extend the PLs is entirely at the discretion of the DOM.
Pat Volpe Chairman
Botswana Metals Limited
Suite 3, 16 Cotham Road, Kew, Victoria, 3101, Australia P: +61 3 9830 7676; F: +61 3 9836 3056 Email [email protected]
www.botswanametals.com.au
ABN 96 122 995 073
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About BCL Limited
BCL Limited is a mining and smelting company owned by the Botswana Government (94%) and Norilsk Nickel (6%). The company commenced operations in 1959 and is now one of the largest private sector employers in Botswana. BCL Investments Limited is a wholly owned subsidiary of BCL Limited.
BCL Limited produces two types of finished matte containing nickel, copper and cobalt, and precious and platinum group metals to a smaller extent. The Selebi Phikwe ore deposits are owned and operated by BCL Limited.
The Selebi copper and nickel ore body was discovered in 1963, and higher grade ore was discovered at Phikwe in 1966. Mining of nickel-copper ore commenced in 1973 and since 1980, BCL’s smelter has operated at an annual production rate of approximately 50,000 tonnes of nickel-copper matte.
About Botswana Metals Limited
Botswana Metals Limited (“the Company”) is listed on the Australian Securities Exchange (“ASX”) and its stock code (ticker) is BML. The Company is engaged in mineral exploration and is fully focused on its portfolio of exploration tenements covering approximately 2,000 sq. km all located in Botswana.
The Company’s objective is to discover an economic base and precious metals resource in eastern Botswana on the well-known Limpopo Belt which extends into Botswana from its neighbouring country Zimbabwe.
Recent exploration has resulted in three discoveries of Nickel-Copper and Copper-Silver mineralisation known as Airstrip Copper, Maibele North and Dibete. The Ni-Cu deposit at Maibele North is just east of Airstrip Copper whilst Dibete is 7 km to the south of Airstrip Copper.
To the east of these discoveries, a recent VTEM program has identified at least 23 new VTEM anomalies that are planned to be part of the Company’s exploration focus in the future dependent upon licence tenure being maintained.
The projects benefit from excellent infrastructure. The Company has solid logistical support and is managed by experienced personnel who have many years’ experience in Botswana as well as other African countries. Botswana is considered to be one of the most advanced African countries in respect to its mining and exploration laws, and for safety and education where English is spoken freely.
BML has offices in Australia (Melbourne) and Botswana (Tobane).
Botswana Metals Limited
www.botswanametals.com.au
Suite 3, 16 Cotham Road, Kew, Victoria, 3101, Australia P: +61 3 9830 7676; F: +61 3 9836 3056 Email [email protected]