Australian company Weatherly has announced that its intentions to acquire Kitumba copper project is being held by the vendor, Intrepid Mines Limited.
According to the company one of the items to be resolved ahead of the deal expected to be sealed in February is the shareholder approval which is one of the conditions precedent for the sale of Kitumba.
Last year Weatherly entered into a binding agreement to purchase 100% of the Kitumba copper project.
The AU$ 4.75 million deal is subject to shareholder approval and any regulatory approvals required in Zambia and Australia.
Kitumba copper development project hosts a JORC-compliant measured and indicated resource of 24.9Mt at a copper grade of 2.32% containing 578,000 tonnes of copper.
Included within this resource is a JORC-compliant reserve of 21.9Mt at a copper grade of 2.20%Cu containing 492,000 tonnes of copper.
In addition, the Kitumba deposit is contained within a granted mining license valid until 2029, while the wider project area also includes four exploration licenses, with a combined current mining and exploration tenure area covering more than 900 square kilometres.
To date an estimated US$30 million or more has been spent on exploration, drilling, metallurgical testwork and other studies for Kitumba, and the purchase includes a fully established exploration camp on site.
The development of the Kitumba mine is also already environmentally permitted based on the development plan proposed by Intrepid.
Weatherly says has solid capabilities built up while operating in adjacent Namibia for over ten years, adding that members of the board and senior management team have extensive experience working in the Zambian mining sector.
“Weatherly is well placed to work constructively and transparently with the Zambian authorities to maximise the benefits of the Kitumba deposit for all stakeholders,” said the company.