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Johannesburg - Former South African Reserve Bank governor Tito Mboweni and his bother Alto have signed a memorandum of understanding (MOU) to take a 20% stake in Ferrox Holdings for a consideration of $32m.
Ferrox Holdings plans to develop the Tivani iron ore project in Limpopo Province. The project may also be developed for the production of ilmenite concentrate for the production of titanium dioxide.
The MOU has been signed with Mboweni Brothers Investment Holdings, founded by Tito and Alto.
Tito Mboweni is currently chairperson of SA-based global gold mining company AngloGold Ashanti [JSE:ANG] and non-executive chairperson of Nampak [JSE:NPK]. He is also an international adviser to New York-based investment bank Goldman Sachs.
Alto Mboweni is a chemical engineer with over 10 years' operational, process design and process modelling experience in the oil, gas and energy sectors. He has been involved, in various consulting capacities, with clients such as Petronas, Chevron and ExxonMobil.
Ferrox CEO David McAdam said: "We are extremely pleased to have at our side a partner such as Mboweni Brothers Investment Holdings, with founders of the calibre of Tito and Alto Mboweni.
"We share their commitment to advance the Tivani project - one of the most significant deposits of its kind in SA - into a major African iron ore producer and, through this, to advance development within Limpopo Province."
Ferrox, currently privately held and British Virgin Islands-registered, has a 74% indirect interest in the Tivani iron ore project through its 100% indirect ownership of SA subsidiary, Tivani (Proprietary) Limited.
The company also has a 100% indirect interest in another South African subsidiary, Tzaneen Mining Projects, which has procured other prospecting rights with significant additional resources in Limpopo Province.
To date, Ferrox has confirmed 470 million tonnes (Mt) of measured, indicated and inferred resources, compliant with and reporting to Canadian NI 43-101 standards.
Significant additional resources under its control are currently being evaluated, together with possible iron ore beneficiation to pig iron or steel in Limpopo Province, and the value added production of titanium and vanadium.
Ferrox plans to raise $150m over the next 12 months for additional working capital to start iron ore production at Tivani, and for drilling programmes to conform to NI 43-101 standards its additional resource base.
Run of mine production of 10Mt per annum iron ore is envisaged from the Tivani project, starting within the next 24 months and ramping up to full production over 36 to 48 months. At full production, about 2.5Mtpa of iron concentrate will be generated for beneficiation within SA or for export.
If smelted, an estimated 1.5Mtpa of pig iron or steel would be produced, in addition to titanium dioxide slag and vanadium pentoxide. The production of about 500 000 to 800 000tpa of ilmenite is also being evaluated.
Ferrox Holdings plans to develop the Tivani iron ore project in Limpopo Province. The project may also be developed for the production of ilmenite concentrate for the production of titanium dioxide.
The MOU has been signed with Mboweni Brothers Investment Holdings, founded by Tito and Alto.
Tito Mboweni is currently chairperson of SA-based global gold mining company AngloGold Ashanti [JSE:ANG] and non-executive chairperson of Nampak [JSE:NPK]. He is also an international adviser to New York-based investment bank Goldman Sachs.
Alto Mboweni is a chemical engineer with over 10 years' operational, process design and process modelling experience in the oil, gas and energy sectors. He has been involved, in various consulting capacities, with clients such as Petronas, Chevron and ExxonMobil.
Ferrox CEO David McAdam said: "We are extremely pleased to have at our side a partner such as Mboweni Brothers Investment Holdings, with founders of the calibre of Tito and Alto Mboweni.
"We share their commitment to advance the Tivani project - one of the most significant deposits of its kind in SA - into a major African iron ore producer and, through this, to advance development within Limpopo Province."
Ferrox, currently privately held and British Virgin Islands-registered, has a 74% indirect interest in the Tivani iron ore project through its 100% indirect ownership of SA subsidiary, Tivani (Proprietary) Limited.
The company also has a 100% indirect interest in another South African subsidiary, Tzaneen Mining Projects, which has procured other prospecting rights with significant additional resources in Limpopo Province.
To date, Ferrox has confirmed 470 million tonnes (Mt) of measured, indicated and inferred resources, compliant with and reporting to Canadian NI 43-101 standards.
Significant additional resources under its control are currently being evaluated, together with possible iron ore beneficiation to pig iron or steel in Limpopo Province, and the value added production of titanium and vanadium.
Ferrox plans to raise $150m over the next 12 months for additional working capital to start iron ore production at Tivani, and for drilling programmes to conform to NI 43-101 standards its additional resource base.
Run of mine production of 10Mt per annum iron ore is envisaged from the Tivani project, starting within the next 24 months and ramping up to full production over 36 to 48 months. At full production, about 2.5Mtpa of iron concentrate will be generated for beneficiation within SA or for export.
If smelted, an estimated 1.5Mtpa of pig iron or steel would be produced, in addition to titanium dioxide slag and vanadium pentoxide. The production of about 500 000 to 800 000tpa of ilmenite is also being evaluated.
