Savannah Resources, Rio Tinto Extend Joint Venture Deadline
June 29 2016 - 3:01AM
Dow Jones News
By Alex MacDonald
LONDON--U.K.-listed miner Savannah Resources PLC (SAV.LN) said
Wednesday that it has agreed with Anglo Australian mining giant Rio
Tinto PLC (RIO) to extend the deadline to complete their Mozambique
heavy mineral-sands joint venture by two months to Sept. 30.
This will give the companies more time to secure approvals,
Savannah said.
On June 22, Savannah announced plans to combine its Mutamba,
Dongane and Jangamo prospects with Rio Tinto's adjacent Chilubane
heavy mineral sands project. This would lead to the amalgamation of
Savannah's aggregated mineral resource base of 65 million metric
tons of ore with 4.2% heavy minerals sands grade and Rio Tinto's
yet-to-be-confirmed resource base of between 7 billion to 12
billion tons of ore with 3% to 4.5% heavy minerals grade.
Savannah will be the operator of the joint venture and may earn
up to a 51% interest in the combined Mutamba/Jangamo project.
Rio Tinto has agreed to purchase all of the joint venture's
heavy mineral sands under a long-term commercial contract from any
mine that may be developed in the project area.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
June 29, 2016 02:46 ET (06:46 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Rio Tinto (NYSE:RIO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Rio Tinto (NYSE:RIO)
Historical Stock Chart
From Sep 2023 to Sep 2024