Magnis Resources, the ASX-focused graphite project developer, will update shareholders on its proposed demerger of its non-core uranium assets with an extraordinary general meeting (EGM) on 5 of April 2016.
The EGM will be put to shareholders to approve the demerger and in-specie distribution of shares in the new entity to eligible shareholders of Magnis Resources.
“We believe this demerger will add value to our shareholders and we are excited by the initial interest shown towards the new company. The demerger will also allow the board and management of Magnis Resources to have clear focus on the Nachu graphite project,” says chairman Frank Poullas.
The company’s three JORC resources in uranium include two in Tanzania and one in Western Australia.
Magnis Resources’ “world class” graphite deposit in Tanzania known as the Nachu graphite project in Tanzania that is scheduled for production in 2017 and it is the clear focus for the company given its high distribution towards natural flake graphite in the Super Jumbo, Jumbo and Large flake categories.
The world supply of such categories is very low, making the Nachu project highly valuable.
Nachu has a maiden JORC resource of 156 Mt at 5.2% total graphite content for over 8 Mt of contained graphite. 66% of the resource is in measured and indicated categories.
It has a 40 year mine life on its current resource with potential to increase if further resource drilling is undertaken on the tenements, given only 2% of the Nachu tenement area has been drilled.
Magnis Resources has off-takes in place already for 180 000 tpa with two leaders in the graphite industry. A US$150 million debt finance term sheet has also been signed for project finance.