Modern Mining November 2015

MINING News

Masimong Group to acquire majority stake in Liviero

Next Graphite, Inc, a graphite exploration/ development stage company operating in Namibia, says it has prepared a 1 000 kg sample from one of the lower adits on its Aukam property in the south of the country. This most recent round of test­ ing and grading has been funded by the company’s joint venture with Caribou King Resources. The test samples were taken as part of a 25 Mt bulk sampling programme from the lower adit at the Aukam project. According studies with a view to establishing the costs of developing a rock phosphate mine and fertiliser operation. Ovation is also committed to funding other phosphate opportunities identified by Montero in the region.” The Opportunity Study Report to be undertaken by Outotec will examine inte­ grated Sulphuric acid, Phosphoric acid and Di-Ammonium Phosphate (DAP)/Mono Ammonium Phosphate (MAP) fertiliser plants, inclusive of associated utilities, infra­ structure and off-sites. Further to this, the possibility of producing second phase Lime Ammonium Nitrate (LAN), urea and other downstream products will be assessed depending on market study results and nat­ ural gas feed possibilities. Outotec will work with the leading French fertiliser consulting company, Sofreco, on the study.  engineering and contract mining business, for an undisclosed sum. Teke, who is Chairman of the Masimong Group, says the deal remains conditional on the receipt of Competition Commission approval only. Commenting on Masi­ mong’s rationale for this transaction, he states: “Our acquisition of a controlling share in Liviero gives us direct exposure to a well-established business that has the size and scale to play a key role in critical growth sectors of the South African econ­ omy. It also supports our strategic goal to become a major black industrial player in South Africa.” Liviero Group CEO Neil Cloete says the agreement represents the beginning of an

Transaction agreements have been signed for the black-owned Masimong Group – which is led by SA Chamber of Mines President Mike Teke – to acquire a 51 % interest in the Liviero Group, South Africa’s largest privately owned construction, civil

exciting new era for the 31-year-old Liviero Group. “With Masimong’s acquisition of a majority stake in Liviero, the company will become the country’s largest black-con­ trolled multi-disciplinary contractor,” he states. “Masimong brings varied expertise, energy, opportunities and a compelling shared vision to take the Liviero Group to the next level. Along with enhanced opportunities to contribute to crucial infrastructure development projects, and the achievement of South Africa’s eco­ nomic and social development goals, we will enjoy a stronger and more sustainable position in the market, for the benefit of all of our stakeholders, including our employ­ ees, clients, suppliers and unions.”  to Next Graphite, these samples are believed to be representative of the prod­ uct found throughout the underground adit. Samples will be delivered to Lilhof Enterprises, formerly Gecko Laboratories of Swakopmund, Namibia, for testing and grading. The specific methods used by Lilhof to test the samples include: crushing and grinding to 218 microns; dual flotation; and drying and particle size analysis. The lab will prepare 80 kg of processed graphite which Next Graphite and Caribou King Resources will distribute to cus­ tomers for their testing of the graphitic product and validation for use in their manufacturing applications. Results from this customer review process are expected to provide details of additional processing required, if any, specific to their manufac­ turing requirements. Additional tests will also be conducted on 84 subsamples to provide an accurate assessment of the purity and grade of graphite from the lower adit, one of three existing adits on Next Graphite’s Aukam property. The property’s adits were mined periodically between 1940 and 1974 and produced a recorded total of 26 740 tonnes of lump graphite. The high-quality, vein-type graphite (also known as lump graphite) is hosted within a shear zone in which underground mine workings show well mineralised structures that are believed to continue down-dip. 

Sample extracted from graphite mine

Liviero Group Chairman Luca Liviero (left) and Mike Teke, Chairman of the Masimong Group, which is to acquire a controlling interest in multi-disciplinary contractor Liviero.

Funding secured for phosphate project studies Montero Mining and Exploration’s funding partner, Ovation Capital, has committed to expenditures of approximately C$2,7 mil­ lion (before VAT) to acquire a 10 % interest in Montero’s Duyker Eiland phosphate proj­ ect, located 30 km north of Saldanha Bay. On March 2, 2015, Montero – listed on the TSX-V – entered into an agreement whereby Ovation could earn a 10 % interest in the project at asset level by complet­ ing a Pre-Feasibility Study and a further 20 % interest by completing a Bankable Feasibility Study.

Comments Dr Tony Harwood, President and CEO of Montero: “Ovation is providing approximately C$2,7 million in funding to advance Montero’s Duyker Eiland phos­ phate project. DRA, Outotec and the Sebata Group have been retained to complete Pre- feasibility, Opportunity and Environment

6  MODERN MINING  November 2015