Published by the government of Zimbabwe
Walter Muchinguri
15 April 2008
Harare — Democratic Republic of Congo's leading copper and cobalt producer, Central African Mining and Exploration Company Plc (Camec) intends to develop a US$200 million platinum mine on the Bougai and Kironde claims, 60 kilometres southwest of Gweru within the next 18 months.
The company said the mine would produce approximately 120 000 ounces to 150 000 ounces per annum. This came after Camec agreed to acquire British firm, Lefever Finance Ltd, a British Virgin Islands company which owns 60 percent of Todal Mining (Private) Limited, a Zimbabwean company, which in turn has rights to the two claims.
The company has agreed to make a cash payment of US$5 million (financed from its existing cash balances) and to issue 215 000 000 new Camec ordinary shares. Listed on the Alternative Investment Market in London, the company said it has already submitted an application for the admission of the 215 000 000 new ordinary shares to trading on the AIM market.
The admission was expected to occur tomorrow. Furthermore, Camec agreed to advance to Lefever a loan of US$100 million to enable it to comply with its contractual obligations to the Zimbabwean Government. The two claims were previously held by Southridge Limited and Unki Mines (Private) Limited -- both companies of the Anglo Platinum Group -- before being ceded to the Zimbabwe Mining Development Corporation and subsequently granted to Todal.
According to the Camec's website, the two claims are estimated to be holding 7 486 750 platinum ounces and 15 683 323 4E ounces, using the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves. "A competent person from Behre Dolbear International Limited has visited the site, reviewed the data and confirms that these estimates are realistic," the company said.
Camec added that Todal has the right to export platinum from Zimbabwe and has also secured an agreement to allow it to expatriate the profits generated by its mining operations in the country. In addition, the Reserve Bank of Zimbabwe has extended to Todal the same fiscal incentives as had been granted to Unki Mines (Private) Limited under the Special Mining Lease Agreement for the development of their Unki project.
These incentives cover royalties, income tax, import duties, value added tax and withholding taxes. Camec's chief executive, Andrew Groves said: "The Board of Camec sees considerable upside potential in Zimbabwe and is excited to be entering this market at a time of significant opportunity. "We believe this is an extremely good deal for Camec's shareholders securing us very attractive platinum assets which we expect to bring into production within 18 months.
"As part of the mining development plan we intend to effect significant social development programmes including medical and schooling facilities for the local communities." Camec has been operating in Zimbabwe since 2002 and its interests are in tantalite, gold and tin, with a production and buying infrastructure already in place. Apart from Zimbabwe and DRC, the company, which is chaired by former English cricketer Phil Edmonds, also has operations in Mozambique, Mali and South Africa.
Its mineral focus among others includes coal, platinum, fluorspar and bauxite. Besides mining, the company's other activities include exploration, trucking and logistics, agriculture and investments.
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