London, England — MININGREVIEW.COM — 30 April 2008 – Chromex Mining plc – a dedicated London-based chrome mining company listed on the AIM – has more than doubled the chrome resources it controls in South Africa from 9M to 24Mt, and aims to launch new production by mid-2008.
A company announcement here yesterday revealed that this achievement was the result of Chromex – through its 74%-owned subsidiary in South Africa – completing the acquisition of Mkhombi Stellite (Pty) Ltd., the 51% managing shareholder of Ilitha Mining (Pty) Ltd.
Ilitha owns the 15 million tonne Stellite chrome project located on the Western Limb of the Bushveld Complex. Chromex will now accelerate the Stellite project into production, targeted for mid 2008. The company aims to produce about 20 000 tonnes/month at Stellite.
The total consideration for Mkhombi comprises R14 million in cash and 6,024,101 new Chromex shares. Application is being made for the new shares to be admitted to trading on the AIM, and this is expected to become effective today.
Chromex confirmed in its announcement that the Stellite project would reduce the company’s operational risk through the development of two mines instead of a single stand-alone operation. A new order mining right has been granted to Ilitha, encompassing the entire 271 hectare Stellite property. This will facilitate fast-tracking development of the Stellite opencast resources, significantly reducing the company’s timeline to production. No further regulatory approvals are required for mining to commence.
Meanwhile, the announcement adds, independent resource and mining consultants have been appointed to upgrade the resource to a SAMREC-compliant status, and to finalise a scoping study on the project.
Chromex CEO Nigel Wyatt commented: “We are delighted to have concluded this acquisition, which significantly increases the company’s chrome reserves under our control. With a mining licence in place we look forward to developing this resource and bringing the company into production.”