Magnum Mining to sell interests of South African emerald project

Australian firm Mangum Mining and Exploration has signed a deal to sell a 74% interest in the Gravelotte emerald project in South Africa to URA Holdings.

The sale forms part of the Australian firm’s efforts to crystallise value from its non-core assets and focus on advancing its Buena Vista Project, Nevada, US, for green pig iron production. The sale includes Mangum’s wholly owned South African subsidiary Gem Venus Holdings, which owns the majority stake in the project. According to the deal, URA will acquire the stake in the project by paying $1.5m (A$2m) in cash and issuing £100,000 worth of its shares.

Gravelotte Project

“As the company has previously reported to the market, activities at the Gravelotte Project remain restricted to care and maintenance and desk stop studies due to reduced travel and restrictions caused by the Covid-19 pandemic,” said Mangum Mining and Exploration said

URA will also be responsible for all of the project’s operations costs of the project until it is completed. Located in the Limpopo Province of South Africa, the Gravelotte Project produced nearly 113 million carats from 1929 to 1982. Emeralds were discovered in the province in 1927 and since then, several companies have explored for and mined within the broader region for emeralds.

It is reported that during the 1960’s the Gravelotte Project itself was the largest emerald mine of its type in the world, employing over 400 sorters. In 2018, Magnum Mining conducted a trial mining and processing programme at the Gravelotte project to obtain critical information to assist with the resumption of commercial mining operations.

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button