Kasbah Resources Limited (ASX:KAS)
Perth, May 27, 2009 AEST (ABN Newswire) - It is with great pleasure that Kasbah Resources Limited (ASX:KAS) advises that Madame Amina Benkhadra, the Minister for Energy and Mines, Water and the Environment has approved an extension to the Memorandum of Agreement between ONHYM and Kasbah for the Achmmach Tin Project in Morocco.
With this extension, the deadline for completion of a Feasibility Study on Achmmach now becomes June 2011.
Under this agreement and on completion and submission of a Feasibility Study to ONHYM (the Office National des Hydrocarbures et Des Mines) Kasbah can exercise its exclusive option to acquire 100% of the Achmmach Tin Project, in the El Hajeb region of Morocco. The agreement also has provision for Kasbah, at its election, to utilise a further 12 months from June 2011 to optimise the study if required.
On exercise of the option ONHYM will transfer the Achmmach mining permits to Kasbah in return for payments of US$1m on transfer and thereafter, annual payments of US$1m for 4 years. The total transfer price is US$5m plus a 3% net smelter royalty.
Kasbah Managing Director Wayne Bramwell said:
"The extension of the option allows Kasbah to continue with its evaluation of the Achmmach Tin Project in a systematic and logical manner towards a development decision. The extension to our agreement underlines the strength of the relationship the company has built with ONHYM in Morocco. Kasbah works in an open and inclusive manner with ONHYM and the company sees ONHYM as a critical stakeholder in the development of the Achmmach Tin Project.
The additional time provided under this extension will allow us to proceed with further surface drilling and a proposed phase of underground exploration that will quantify the development parameters for this major new hard rock tin project.
Drilling is planned for July with the objective of upgrading an area of the Meknes Zone from JORC Inferred to JORC Indicated classification. This will answer the key questions of spatial continuity on an underground mining scale and provide confidence to progress with a phase of underground exploration drilling."
Contact
Wayne Bramwell
Director
Tel: +61-8-9463-6651
Peter Youd Managing
Chief Financial Officer
Tel: +61-8-9463-6651
info@kasbahresources.com
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