Perth - Tawana resources has received an expression of interest from BlueRock Diamonds to buy out its wholly-owned Diamond Resources unit.
Tawana, which is an iron ore explorer, says an outcome on the sale is expected ‘in the coming quarters”.
In August 2013, Diamond Resources inked an option agreement with BlueRock that would see it ultimately buy Diamond Resources’ Kareevlei Diamond Project Mining Right for R4 million.
BlueRock Diamonds was established in October 2012 to acquire or invest in under exploited diamond mines and diamondiferous tailings dumps in South Africa and sub Saharan Africa.
It exercised its option over Kareevlei in September 2013 and subsequently listed on London’s AIM market.
Kareevlei Mining is now 74% owned by BlueRock, with the remaining 26% owned by a Kimberley-based empowered company, Ghaap Mining.
BlueRock is incorporated in England and Wales and mainly operates in South Africa.
Tawana Resources is an iron ore focused Australian- and Johannesburg-listed company. It initially sold Kareevlei because it considered the entity to be non core.
Tawana’s principal project is in Liberia, West Africa and its wholly-owned Mofe Creek project is a new discovery in the heart of Liberia’s historic iron ore district, located 20km from the coast and 80km from the country’s capital city and major port, Monrovia.
This project hosts high-grade friable itabirite mineralisation which can be easily upgraded to a superior quality iron ore product of 64 to 68% iron, for which there is consistent global demand and a premium sales price.
As at 30 June 2015, Tawana Resources held $1.6 million in cash.
IOL