Japanese copper producer Nittetsu Mining has signed a memorandum of understanding with Kasbah Resources covering a deal to buy a 5% stake in the Achmmach tin project in Morocco. Under the terms of this MOU, Nittetsu Mining will pay A$7.25 million for the right to acquire a 5% interest in joint venture entity being established to develop the project. Nittetsu Mining will also be entitled to a minimum of 5% of the tin production from the project based on mutually agreed market terms.
In a statement Kasbah Non-executive Chairman Dr Rod Marston said: “Nittetsu Mining’s entry into the Achmmach Tin Project is a significant step for Kasbah as it brings yet another strong financial and technical group to the project to assist with project financing and development. Most importantly, the entry of Nittetsu Mining strengthens our cash position, introduces further mining expertise and reduces our future funding requirements.”
Japanese companies are likely to control 25% of the Achmmach project, with Toyota Tsusho taking another 20%. The definitive feasibility study on the project is due to be completed by the end of this year, with first production of tin due in 2015.
