The TSX listed A-Cap Resources Limited has been granted a mining licence by Botswana government which clears way for the construction of the first uranium mine in the diamond rich country. A-Cap said in a filing that it has received formal confirmation from the Department of Mines that its application for a mining licence for the Letlhakane Uranium Project (PL045/2004) was successfully approved.
“The mining licence was signed by the Minister of Minerals, Energy and Water Resources (MMEWR), his Honourable Onkokame Kitso Mokaila (MP) and takes effect from 12 September 2016, valid for 22 years,” Managing Director of A-Cap Resources, Paul Thomson said.
He added that the granting of the mining licence is a significant milestone for the company, “following the project’s recent final environmental approval secured in May 2016 from the Department of Environmental Affairs and the granting of provisional project surface rights from the Mmadinare Sub Land Board in June 2016.”
A-Cap said with the mining licence now granted, it remains well funded to progress to the next stage of project optimisation works and pre-feasibility study. It added that it plans to seek admission to the Hong Kong Stock Exchange and raise capital for the development of the first uranium mine in Botswana early in calendar year 2018.
“The Board would like to thank the Botswana Government and acknowledge its support for the Letlhakane Uranium Project, in particular the Department of Mines, Department of Geological Survey, Radiation Protection Inspectorate, Department of Environmental Affairs, Land Boards and other government departments that provided assistance in approving the mining licence,” said Thomson.
“The Board expresses its gratitude to the Serule, Gojwana and Tonota communities and look forward to working together in developing the Project. Most importantly, A-Cap would like to thank the Company’s Shareholders for their continued support. The trading halt in the Company’s shares can now be lifted.”
A-Cap has conducted significant exploration and resource development at Letlhakane since 2006, and has successfully grown the project into one of the largest undeveloped uranium deposits in the world. The entire resource is within 80m of the surface.
The project is based on shallow open pit mining, heap leach and solvent extraction. A-Cap submitted an application for a mining licence on 18 August 2015 with the objective of bringing the project into early production and taking advantage of a forecast upturn in the uranium market.
The project has a number of competitive advantages because of existing infrastructure located close to it. The main North South highway in Botswana, the A1, is a sealed road in very good condition, which passes through the project.
It serves Botswana’s Northern neighbours from the industrial centres and ports in South Africa. The main rail line in Botswana, a Cape gauge, passes through the project. There is a 220 kV switching station located at Serule Village which is approximately 8km from the project plant site.
The local power utility, Botswana Power Corporation, have carried out a system survey and confirmed that they can supply the projects power requirements. A borefield has been located approximately 30km to the west of the Project area and an extraction permit has been granted by the Water Apportionment Board.
