(MENAFN - ProactiveInvestors - Australia) Kaboko Mining (ASX: KAB) will draw an additional A4 million of the 10 million prepayment debt facility and long term manganese offtake agreement with Noble Resources International, a subsidiary of Noble Resources.
This further draw down is subject to confirmation of licensing conditions in relation to the Northern Manganese Project at Mansa in northern Zambia, which Kaboko expects will be satisfied on or before 7 January 2013.
Kaboko will then be fully funded into high grade manganese production at its proposed first open cast mine, with first delivery of manganese ore under the offtake agreement slated for the June quarter of 2013.
The 4 million provides the company with all the forecast funding necessary to complete the mine development and associated plant and equipment purchases at its Northern Manganese Project and commence deliveries of high grade manganese ore to Noble.
Preliminary mine plans have been completed at the project with initial planned run-of-mine production of 2,500 to 5,000 tonnes per month, ramping up to 10,000 tonnes per month in 2013.
Kaboko has, through its subsidiary Impondo Zambia, secured land in the Serenje region on the TAZARA rail line and is currently negotiating participation in the rail line.
Impondo Zambia concluded discussions with Mofed Tanzania, a Zambian government owned logistics service provider situated in Dar es Salaam, which will enable Kaboko to utilise available rail and export facilities.
Northern Manganese Project
Exploration work completed to date has identified high grade manganese mineralisation in veins typically in excess of 4 metres wide and strike lengths of over 400 metres.
Trenching undertaken has also shown that the reef is open-ended towards the northwest and southeast.
Kaboko is in the process of mobilising equipment and additional personnel to site, as well as a simple crushing system and processing plant being designed for installation in the March quarter of 2013.
The company has appointed Tokkas Van Heerden as executive director and chief executive officer.
Van Heerden has been instrumental in the introduction of the Zambian manganese projects to Kaboko and in country management of these projects as the operating manager.
Impondo South Africa, a consulting firm owned by Van Heerden, provides key operational and personnel support services in country to Kaboko and its subsidiaries.
Van Heerden is actively involved in developing mining rights throughout Africa and has extensive mining experience in South Africa, DRC, Mozambique, Zambia, Namibia and Zimbabwe.
Meanwhile, Jason Brewer has resigned as a director of the Board due to other business commitments.
Papi Molotsane has also been appointed to the Kaboko Board as the first of the two proposed Noble representatives. Noble intends to nominate a further representative in early 2013.
Leapeetswe (Papi) Molotsane is the chief executive officer of Africa Commodities Group, a joint venture company between the Noble Group and Altius Investment Holdings, which is a domestically owned South African company with investments in trading, water treatment and technology companies.
Molotsane has held senior executive positions in a diversified range of businesses embracing logistics and transport, telecommunications and manufacturing, among others.