Nigeria resumes mining in Zamfara state on improved security
Nigeria has lifted a ban on mining exploration in the northwestern state after a five-year suspension.
Midnight Sun Mining (TSXV: MMA) announced Monday that the application for the exploration licence renewal for its flagship Solwezi copper project in Zambia has been approved.
The exploration licence renewal will apply to Kazhiba, one of three licensed target areas on the 506-sq.-km Solwezi property. The project is 10 km from Africa’s largest copper mining complex, the Kansanshi mine held by First Quantum Minerals (TSX: FM), which has an exploration agreement with Midnight Sun.
Midnight Sun has been exploring Kazhiba this year to define its copper oxide resources, as well as potential feed sources for the Kansanshi mine with First Quantum.
In September, the Zambian government admitted it had erroneously rejected an exploration licence renewal for the Solwezi project.
“The Kazhiba licence issue has been resolved, removing any concern as to the status of this critical component of our exploration and development plans,” Midnight Sun CEO Al Fabbro said in a news release. “We wish to once again thank the Zambian Ministry of Mines and Minerals Development for their assistance in rectifying this matter.”
Fabbro said the company is focused on finalizing results of its exploration program at Kazhiba.
“Working in collaboration with First Quantum Minerals, this program is part of a larger, multi-target campaign aimed to define near-surface oxide copper mineralization destined for [the] Kansanshi complex,” Fabbro said.
“Near-term production and potential cash-flow provides incredibly rare optionality to our Solwezi project, and a non-dilutive path toward the continued exploration of our underlying sulphide copper targets at Kazhiba, Mitu and Crunch.”
Solwezi is also near Barrick Gold’s (TSX: ABX; NYSE: GOLD) Lumwana copper mine — all among projects that sit on the Zambian copper belt that stretches into the Democratic Republic of Congo.
Midnight Sun and KoBold Metals, backed by a coalition of billionaires including Bill Gates and Jeff Bezos, have also agreed to amend their earn-in agreement to remove the longstop date to allow time for the two parties to receive the necessary Zambian regulatory approvals to complete the final condition precedent of the agreement, Midnight Sun said.
The US-based startup aims to earn a 75% interest in the Dumbwa portion of Solwezi by spending $15 million in exploration and making cash payments totalling $500,000 over four and a half years.
Midnight Sun’s shares were down 3.3% on Monday morning in Toronto, giving the company a market capitalization of C$95.1 million.
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