Australian mining company Mozambi Resources Ltd intends to acquire two licenses for graphite and vanadium exploration in northern Mozambique, the company said Tuesday, adding that it looked forward to concluding negotiations with the Mozambican authorities.
The two licenses (6142 and 6140) are in the Montepuez district, in the province of Cabo Delgado, in the vicinity of other blocks already under concession, where large graphite and vanadium reserves have already been identified.
With particular interest in the 6142 block, due to its proximity to the Monte Nicanda deposits operated by Triton Minerals, and Balama Central, operated by Syrah Resources, Mozambi Resources is optimistic about the results of the exploration activities it plans to start in the short term.
“We are very excited about the potential that this area has, as an emerging graphite and vanadium basin,” said the company’s chief executive, Alan Armstrong, adding he was “satisfied” with the “rapid development of negotiations” with the Mozambican authorities.
Prospecting results so far from Triton Minerals in Nicanda indicate the region may contain the world’s largest combined deposit of graphite and vanadium with 1.457 billion tons at an average concentration of 10.7 percent of graphitic carbon and 3.93 million tons at an average concentration of 0.27 percent of vanadium pentoxide.
The agreement that Mozambi Resources is negotiating with the Mozambican Ministry of Natural Resources is subject to payment of US$50,000 for the option to purchase, in addition to another potential payment of a similar amount, as well as issuing 15 million shares in the company, if a put option for sale of the licenses is exercised.
The mining company, which expects to close the deal with the Mozambican authorities by March, intends to proceed with field work as soon as it receives the two licenses, and this work should include trenching, collecting rock samples, mapping and ground geophysics.
If the results of the survey indicate the existence of a deposit with 300 million tons of graphite at a concentration greater than 5 percent (based on reporting standards of the Australian Code for disclosure of operating income), Mozambi Resources, which is listed on the Australian Stock Exchange, undertakes to issue 15 million shares to the Mozambican state.
Should the deposit contain more than 600 million tons, in addition to the issue of the shares, the company will have to pay US$250,000 to the country, according to the press release about the deal.
Formerly called Mozambi Coal, Mozambi Resources has interests in two coal mining concessions in Tete province, in central Mozambique, specifically the 3245L license (near the city of Tete) and 3246L license (over 50 kilometres from same city).
It has a majority stake of 70 percent in both concessions, and its consortium partner is Mozambique’s Camal & Companhia Lda. (macauhub/MZ)