MEIKLES Limited has announced the formation of a wholly-owned subsidiary to tap into the lucrative but capital-intensive industry.
The new entity, Meikles Resources, has an objective to focus on the development of mining and resource opportunities in the country.
Profits from Meikles Resources "are expected to exceed those anticipated for the entire group as presently constituted over the coming years and will therefore be of material significance", according to Meikles board chairman, John Moxon.
Meikles Resources would be a holding company with subsidiaries focusing on a particular mineral.
It would have a US$150 million purse for all the minerals under its wings. Meikles Limited would work with a technical partner for each and every mineral, who would provide both expertise and inject a portion of capital.
More details of the new company could not be obtained last week as Meikles executives cited confidentiality clauses signed with technical partners that bar them from disclosing certain information.
In a statement accompanying the group's financial results for the six months ended September 30 2012, Moxon said Meikles Resources has commenced exploratory mining operations "on one opportunity and will start full mining as soon as the full extent of the resource has been established".
Moxon said the company would combine local and international skills and financial resources within the framework of its indigenous status.