[miningmx.com] — PALLINGHURST Resources, the investment fund chaired by former BHP Billiton CEO Brian Gilbertson, said Jupiter Mines’ acquisition of a 49.9% interest in the Tshipi manganese project in
South Africa from a consortium was nearing conclusion.
This came after Jupiter’s shareholders approved the Aus$245m deal last week –
an all-scrip purchase of the stake in Tshipi in turn gives the Pallinghurst consortium
an 85% stake in Jupiter.
The Pallinghurst consortium includes Korean steel giant Posco, private miner
AMCI Holdings, investment bank Investec and Dutch pension fund APG.
“The proposed transaction is expected to transform Jupiter into a significant
manganese and iron ore explorer and developer,” said Pallinghurst in a statement to
the JSE.
Pallinghurst said approval by Jupiter shareholders was a significant step towards
completion of the transaction.
“The completion of the transaction will enable renewed focus on the mine development at Tshipi, as well as further exploration at Jupiter’s Mt Ida iron ore project in the Yilgarn, and the Oakover manganese tenements in the Pilbara,”
Pallinghurst said.
The remaining conditions precedent relating to the transaction include among others, the approval of the South African Competition Commission.
Tshipi lies in the heart of the Kalahari Basin, which holds 80% of the world’s known manganese reserves.
The project is 50.1% owned by Ntsimbintle Mining and contains over 160m tonnes of ore averaging 37% manganese.
Gilbertson was last week quoted by Australian media as saying that he now expects
the $150m Tshipi mine development to get the green light in a matter of
months.
Jupiter would then need to raise $70m to $100m by the end of the year to finance its share of the development cost, most likely through a rights issue.
Mine construction is expected to take 18 months, with the mine slated to produce 2
million tonnes annually by 2013.
