BCL Mine joint venture kicks off

Mbongeni Mguni | Wednesday March 12, 2014 14:54

On Monday, the Australian firm, Botswana Metals Limited, announced that it had secured retention licence extensions to three properties, the main pre-condition to the commencement of the joint venture originally agreed upon in November 2012.

Under the deal, BCL Mine had agreed to spend US$4 million (P35.4m) in a drilling programme, thus earning 40% equity in the venture. BCL Mine would also have the option of raising this to 70% by funding the project through to the completion of a bankable feasibility study.

At that point, the Selebi Phikwe-based copper and nickel producer would also have earned the off-take rights at commercial prices to any ore mined. The three project areas are approximately 55 kilometres away from BCL Mine existing operations.

Announcing the joint venture’s commencement on Monday, Botswana Metals’ chairman, Pat Volpe said the two parties would immediately begin exploration and drilling activities on the three licence areas.

Volpe said of the three targets, the Maibele North deposit would be the primary focus of exploration as previous drilling had intercepted nickel at around a depth of 50 metres.

“The joint venture partnership can fast track our efforts towards potential mining,” he said in a statement released on Monday.

‘Botswana Metals’ projects provide the potential for additional ore particularly for nickel and copper that can be trucked to the BCL plant.

“The proximity of BCL’s operation and infrastructure at Selebi Phikwe will significantly reduce the capital and operating cost of any potential mine at Maibele North and at our other projects.”

Under the joint venture, BCL Mine will avail its processing equipment, which includes crushing, milling, flotation and smelter plants, to ore from the three licences, reducing capital expenditure on the project.

“BCL has the marketing and sales team in place with international client base to sell the final product,” Volpe said.

“BCL will provide BML and the joint venture with the expertise, logistics and access to plant and equipment.”

Under the deal, BCL also has a first right of refusal to fund the exploration on the balance of the BML exploration portfolio that covers the extension of the Limpopo belt into Eastern Botswana from Zimbabwe.