Savannah Resources, Rio Tinto Extend Joint Venture Deadline

By Alex MacDonald

LONDON--U.K.-listed miner Savannah Resources PLC (SAV.LN) said Wednesday that it has agreed with Anglo Australian mining giant Rio Tinto PLC (RIO) to extend the deadline to complete their Mozambique heavy mineral-sands joint venture by two months to Sept. 30.

This will give the companies more time to secure approvals, Savannah said.

On June 22, Savannah announced plans to combine its Mutamba, Dongane and Jangamo prospects with Rio Tinto's adjacent Chilubane heavy mineral sands project. This would lead to the amalgamation of Savannah's aggregated mineral resource base of 65 million metric tons of ore with 4.2% heavy minerals sands grade and Rio Tinto's yet-to-be-confirmed resource base of between 7 billion to 12 billion tons of ore with 3% to 4.5% heavy minerals grade.

Savannah will be the operator of the joint venture and may earn up to a 51% interest in the combined Mutamba/Jangamo project.

Rio Tinto has agreed to purchase all of the joint venture's heavy mineral sands under a long-term commercial contract from any mine that may be developed in the project area.

-Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

June 29, 2016 02:46 ET (06:46 GMT)

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