African Consolidated Resources (LON:AFCR) has come to an amicable settlement over the ownership dispute concerning its Kalengwa copper mine in Zambia.
A former shareholder of the seller of the mine had previously claimed that the vendor did not have the right to sell, but this dispute has now been settled.
Company chairman Roy Tucker said that, in principle, there is no reason under the law why the licence should not now subject to payment of outstanding considerations immediately be issued as a current licence and transferred to African Consolidated (ACR).
“We are now actively pursuing the process of this with the Zambian Ministry of Mines, although our experience shows us that the bureaucratic process may yet take some time,” Tucker disclosed.
There was less good news regarding an unlawful occupier of the mine who was continuing to process the rock dump left over from mining in the 1970s.
Despite reaching an agreement with the occupier to operate the Rock Dump on a shared basis, the occupier has welched on the deal, and has even won an action in the Ndola High Court that he has a valid right to the Rock Dump under his Mineral Processing Licence.
As a result, the mine is still being occupied and being exploited as before.
ACR believes the court was in error when it ruled in the occupier’ favour and in any case stressed that the mineral processing licence held by the occupier only gives him rights over the rock dump, and not the Kalengwa mine itself.
Setting aside legal activity, Tucker said he anticipates positive news on the licence issues regarding the Nkombwa Hill Rare Earth Elements (REE) project.
“I expect an announcement to be made on this shortly at the same time as an announcement by Galileo Resources (LON:GLR) who is financing our farm in partner who is committed to a $1.35 million spend to achieve an Indicating REE Resource,” Tucker revealed.
In a review accompanying the miner’s interim results, Tucker highlighted the progress made on the Pickstone-Peerless gold mine.
“With a JORC Resource of 3.2 million oz gold - more than 50% in the Indicated and Measured category - and a concept study estimating a net present value on an 800,000 oz open pit at Pickstone of US$300 million at a 10% discount rate, Pickstone-Peerless is a company changer,” Tucker avowed.
Losses in the six months to the end of September totalled US$2.45mln, versus a loss of US$1.76mln the year before.
The company currently has no revenue.
The company revealed it has made non-executive director Lloyd Munyaradzi Manokore vice-chairman of the company.
The company also welcomed Eve Mkondo as chief financial officer to ACR.
Mkondo is a chartered accountant and is also chief executive officer of ACR’s Zimbabwe holding company and for the company’s operations in Zimbabwe.