Africa-focused mining and development company Marula Mining, through its South African subsidiary Muchai Mining South Africa, has signed a binding term sheet with Mansena Cobalt to acquire a 51% shareholding in Mansena Kruisrivier Cobalt (MKC).
MKC holds prospecting rights over 2,340.90 hectares in the Kruisrivier 74 JC Farm, Elias Motsoaledi district, Limpopo, South Africa, which includes the historic Kruisrivier cobalt mine.
A mining permit application by MKC has been accepted and is expected to be issued soon.
The Kruisrivier mine, which operated intermittently for over 55 years until the 1930s, has historical records showing high-grade cobalt, gold, nickel, copper, chromium, zinc, lead, platinum, and silver mineralization.
Previous production and sales reported cobalt ore concentrates with up to 16.67% cobalt and gold grades of up to 68 g/t. Historical resources indicate 733,000 tonnes of ore grading 8% cobalt down to a depth of 200 meters.
Marula’s due diligence confirmed the presence of high-grade cobalt mineralization, identified on the surface in waste stockpiles and shallow underground workings, with veins of cobalt ore between 0.5 meters and 4 meters wide.
The cobalt occurs as a cobalt arsenate deposit with both safflorite and erythrite. Independent assays from Q4 2023 reported 8.31% cobalt, 0.81% nickel, 323 g/t molybdenum, 164 g/t gold, 2.73 g/t palladium, 0.16 g/t platinum, 1.91 g/t rhodium, and 86 g/t gold.
Under the term sheet, Marula will issue about one million new ordinary shares valued at £100,000 to Mansena Cobalt and make an additional cash payment of £100,000 upon completing final due diligence.
Marula will also fund 100% of the costs to complete an updated bankable feasibility study (BFS) and pay a monthly management fee of R100,000 (about £4,300) to Mansena Cobalt until the feasibility study is completed.
Within 12 months of signing or upon a decision to mine, Marula will issue an additional £200,000 of ordinary shares and pay a cash fee of $1.7 million.
Marula’s technical team has completed a detailed due diligence review of the Kruisrivier cobalt project, including historical data assessment and site visits.
The company plans to carry out a comprehensive exploration program and geological investigation to confirm historical data and establish a JORC-compliant mineral resource.
This will include satellite multispectral analyses, airborne geophysics, surface and underground sampling, resource drilling, and core analyses.
Additionally, the BFS will involve detailed process mineralogy, extractive metallurgy, and process development studies.
The acquisition enhances Marula’s strategic battery metals portfolio in Africa, providing a high-grade, brownfield cobalt project with significantly higher grades than those found in the African Copperbelt and the Democratic Republic of Congo, which dominate global cobalt production and reserves.
Final due diligence and execution of formal share sale and purchase documentation are expected to be completed in the third quarter.
