Black Mountain has secured a farm-in partner for its Busumbu phosphate project, in Uganda.
Black Mountain has struck a deal with African Minerals Ventures (AVM), which will earn a 51% interest in the project by spending $3-million over the next three years, with Black Mountain to retain a 24% free-carried interest in the project during this expenditure.
AVM is proposing to complete further detailed exploration work at the project, including resource definition drilling, preliminary mine planning and optimistation studies, broad sampling and metallurgical testwork, as well as preliminary processing plant optimisation studies.
Black Mountain executive chairperson Maurice Feilich noted that the farm-in would greatly reduce the company’s expenditure in Uganda, while allowing it to benefit from any exploration and development success, given that the company retained a large stake in the asset.
“It also frees up funds to pursue our Crown lithium and other cobalt assets in the Democratic Republic of Congo, and assess other opportunities to diversify and strengthen Black Mountain’s portfolio.”
