PNRB to finalise Selkirk deal in August

Chakalisa Dube | Monday August 1, 2022 06:00

Selkirk, located near Matsiloje village, has been under care and maintenance for about 20 years and was being disposed of as part of the larger BCL Ltd deal. PNRB, the local subsidiary of a Canadian nickel producer, offered about P67 million for Selkirk earlier this year.

In February, PNRB said that the transfer of ownership of the mine would be done within 120 days. However, in a statement this week, the company said that more time is required to fully conclude the Selkirk transaction.

“Due to additional time required to finalise the surface rights lease assignment and certain COVID-19-related delays, the closing period for the Selkirk acquisition has been extended and it is anticipated that the acquisition will be completed on or before August 15, 2022,” reads the statement seen by BusinessWeek.

PNRB said it would soon begin further exploration works at the BCL Mine to determine other mineral resources available besides copper.

“The anticipated work programme on the Selebi Project for the next 18 months includes, among other things, ongoing diamond drilling and establishing a mineral resource,” PNRB officials stated. “In addition, the underground infrastructure at the Selebi North mines is expected to be upgraded in support of the underground drilling programme and to improve the health and safety at the mine.”

The Selebi Phikwe project has historical mineral resource estimates of other minerals such as diamonds but no study has ever been undertaken to verify these estimates.

Under the purchase agreement for the Selebi Phikwe mine, PNRB committed to pay P337 million as an initial purchase fee while a balance of P337 million would be paid once production starts. Production at the mine is expected to start in the next few years after the completion of the exploration exercise and other preparatory works.

Former BCL Mine boss, Montwedi Mphathi is leading PNRB’s efforts to resuscitate both the Phikwe Mines and Selkirk.