- Plymouth Minerals has been notified that grant of tenure covering the Banio potash project has been approved by the Minister of Mines in Gabon – the new exploration licence is Arete No. 161.
- Plymouth entered into a Binding Heads of Agreement to acquire a 100% interest in two major potash projects in Gabon in October 2015 – the Banio and Mamana projects.
- Both projects host potash minerals and have been in exploration application stage, and a condition precedent of the transaction was the granting of at least one of the exploration licence applications.
- The grant of the Banio licence successfully satisfies the condition precedent.
- Plymouth is of the view that either of the Banio or Mamana projects have the potential to be a highly valuable asset with potential to enhance shareholder value.
- Plymouth will advise the market on the completion of its due diligence at Banio shortly.
- The processing of the Mamana exploration licence application is proceeding.
Background for Plymoth projects
Plymouth entered into a binding Heads of Agreement to purchase Equatorial Potash in October.
[quote]Equatorial holds 100% of the shares in Gabonese company Mayumba Potasse SARL, which in turn holds a 100% interest in the Banio exploration licence and a 100% interest in the Mamana asset, which is currently held under exploration licence application.
About the Banio project
The Banio project is located in the south of Gabon and covers 1 244 km2 of potash-bearing sediments hosted in the Congo Basin.
Previous drilling has identified very wide zones of potash mineralisation (sylvite and carnallite) within the Banio tenure. The project lies 20 km north-west of Elemental Resources’ major Sintoukola potash project, which hosts a global resource of 5.3 Bt potash mineralisation at 14.3% K2O (22.6% KCl).
“Plymouth is pleased to be working with Gabonese officials and Equatorial to obtain granted tenure and to complete this transaction. To have two potentially company-making projects as part of the transaction is very rare. With previous drilling showing shallow, high-grade potash and good access to infrastructure we are excited by the potential this acquisition has to drive shareholder wealth,” says Plymouth MD Adrian Byass.