Canadian mining exploration company Broadway Gold Mining has acquired an 85 percent interest in a land package in Namibia covering approximately 56.3km².
As part of the deal, Broadway has signed licence transfer agreements with three Namibian corporations to purchase an undivided 85 percent interest for US$50,000 in cash and through issuance of three-million common shares.
The purchase covers four exploration prospecting licences (EPLs) in the land package, namely 6074, 6075, 6257 and 6999, and the mineralisation of the licences stretches over a total strike length of 30km west of Tsumeb.
The licences cover ten former vanadium mines and prospects besides three former copper mines and are located around 35km east, the four EPL licences surround the Abenab and Christina mines, as well as the Tsumeb camp.
Past-producing mines and prospects on the EPLs are hosted in the Tsumeb Super Group and include the Alt Bobos, Bobosberg N and S, Torassen, Uris, Karavatu, Tsumeb West, Tsumeb and Freisenberg mines.
The acquisition is part of the company’s strategy to expand its effort in identifying rich deposits.
The Tsumeb mining camp is known to host both high-grade polymetallic deposits and stratabound copper/silver/cobalt deposits. It also features deposits of gold, vanadium, germanium and uranium.
“Namibia is a mineral-rich country with world-class base-metal and uranium deposits. Broadway’s management team has successfully worked in the country for over 19 years and delivered a number of unique opportunities to shareholders during this time. We believe our access to the Tsumeb mining camp will give us another opportunity to show that we can upgrade a promising project to development or alternatively attract a major partner like Kennecott, a division of Rio Tinto, at our Madison copper project located south-east of Butte, Montana,” Broadway Executive chairman Duane Parnham said.
“Unmined zones still remain to the side of the main mine workings and will be followed up in a planned exploration program. The Tsumeb West Mine known for copper, silver and vanadium production lies within the EPLs. Tsumeb West was briefly mined in 2007-2008. The Tsumeb smelter, owned and operated by Dundee Precious Metals of Toronto, and the town of Tsumeb (44,000 pop.) sit on the eastern boundary of the property.”
The agreements are subject to TSX venture exchange approval and transfer of the 85 percent interest in the EPLs into a Namibian corporation, which is fully controlled by Broadway.