Bushveld Resources Ltd

Bushveld Resources Limited (AIM:BMN) is an AIM-listed focused on evaluating and developing iron ore projects in Sub-Saharan Africa. Bushveld’s core asset, the Mokopane Iron Project, is a recently discovered, potentially world class magnetite-hosted iron ore deposit in the Limpopo Province, South Africa. Mokopane has the potential for hosting >2 Billion tons of iron ore.

 

Investment Summary

  • In February 2011 Obtala entered into an agreement to acquire a 50% interest in the issued share capital of Bushveld Resources Limited
  • Bushveld Resources listed on AIM on 26th March, 2012, with an issue of 283,969,110 new ordinary shares of par value £0.01 ("Ordinary Shares") at 20p each. Based on the Placing Price of 20p with raised gross proceeds of £5.46 million, the market capitalisation of Bushveld immediately following completion of the Placing and Admission was £56.7 million. Obtala's shareholding of 46% is valued at approximately £26 million at admission.

 

Opportunity

  • Deposit located in the Limpopo Province of South Africa, within a well established mining region
  • Located in close proximity to the world’s largest open pit platinum mine and associated infrastructure
  • Magnetite hosted iron ore deposit with potential upside from vanadium and titanium content
  • JORC compliant Vanadium-Titanio-Magnetite ("VTM") resource in excess of 600 million tonnes (comprising 260 million tonnes Indicated and a further 373 million tonnes Inferred) has been established from a 4.5 km strike length
  • Magnetic anomaly under Bushveld’s ownership is 75% unexplored, offering low cost, low risk opportunity to identify additional mineralisation
  • Bushveld geologists have identified potential for >2Billion tons of iron ore
  • 18 month operational objectives; Pre-feasibility study, mineralogical and metallurgical test-work, and advanced drilling campaign
  • Strong management team with track record of discovery success
  • Well placed for corporate growth