Under the terms of the letter of intent, Giyani has agreed to make a $200 000 payment and work commitment of $1 million over five years to Menzi upon the completion of a due diligence and title review and definitive agreement.
The acquisition of past producing high grade manganese mines, in combination with Giyani’s manganese projects in Botswana, will expand Giyani’s portfolio of manganese assets and continue the advancement of Giyani’s strategy to acquire raw materials for the growing battery industry.
The Kampumba and Chiwefwe manganese open-pit mines were operational between 1954 and 1968, producing an estimated combined total of 360 000 t at grades exceeding 50% manganese.
The mines are located close to infrastructure such as gravel roads, railway, power and labour, and geophysical survey data and historical non-NI 43-101 compliant resource estimates indicate significant manganese potential, said Giyani.
Giyani has engaged Boswell Projects as the project manager for its portfolio of assets in southern Africa. The company will complete a due diligence review of the assets, assess the potential for near-term production from these mines and provide other corporate services.