Marula Mining, an Africa-focused mining and development company has entered into a binding term sheet with Mansena Cobalt, a South African mining firm, to secure a controlling 51% stake in Mansena Kruisrivier Cobalt (MKC).
MKC, currently in the process of obtaining a mining permit, holds historical significance as a former cobalt mine operational for over 55 years until the 1930s.
It boasts high-grade mineralization including cobalt, gold, nickel, copper, and various other minerals.
Historical records indicate the extraction of cobalt ore with concentrations as high as 16.67% cobalt alongside significant gold grades of up to 68 g/t.
Recent assessments by Marula confirm visible high-grade cobalt mineralization in surface waste stockpiles and shallow underground workings, occurring in narrow veins and lenses ranging from 0.5 m to 4 m in width.
The cobalt mineralization is characterized as a cobalt arsenate deposit with safflorite and erythrite.
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Independent assay results from late 2023 revealed substantial mineral concentrations, including 8.31% cobalt, 0.81% nickel, and notable quantities of molybdenum, gold, palladium, platinum, and rhodium.
Under the terms of the agreement, Marula will issue approximately one million new ordinary shares valued at around £100,000 to Mansena Cobalt, with an additional £100,000 cash payment upon final due diligence completion.
Marula will also finance the entirety of the updated bankable feasibility study (BFS) costs and pay a monthly management fee until the feasibility study concludes.
Exploration plans include comprehensive satellite multispectral analyses, airborne geophysics, and extensive geological investigations to verify and potentially expand upon existing historical data, aiming to establish a Jorc-compliant mineral resource.
Marula aims to complete all necessary technical studies, including a BFS incorporating process mineralogy and metallurgical studies, within the next 12 months.
This acquisition will position Marula as among the strategic firms in battery metals within Africa, specifically targeting high-grade cobalt opportunities like MKC, which boasts superior grades compared to those typically found in the African Copperbelt and the Democratic Republic of Congo.
The finalization of due diligence and execution of formal share sale and purchase documentation for MKC are anticipated to conclude in the third quarter of 2024.
