Explorers secure Tanzanian licences

Western Australian companies OreCorp, Black Rock Mining and Peak Rare Earths will finalise agreements with the Tanzanian government this month to develop their projects.

OreCorp, which is seeking to develop the Nyanzaga gold project in the northwest of Tanzania, this morning said it had received a special mining licence for the 3-million-ounce asset, sending the explorer’s shares up by more than 10 per cent.

The licence was approved in June, with OreCorp to finalise a joint venture agreement with the Tanzanian government at a signing ceremony on December 13.

Black Rock and Peak Rare Earths (formerly Peak Resources) will also be attending.

Peak plans to develop the Ngualla rare earths project, located about 150 kilometres from Mbeya, while Black Rock is seeking to develop the Mahenge graphite project, about 250km north of the border with Mozambique.

OreCorp said the mining licence, which has an initial 15-year term, was a pivotal milestone in the development of Nyanzaga and that it would be issued to the new JV, called Sotta Mining Corporation.

The explorer has an 84 per cent interest in the JV and the Tanzanian government a 16 per cent free-carried interest in accordance with the nation’s Mining Act.

OreCorp’s shares closed 14 per cent higher this afternoon to trade at 78 cents, its equal highest share price since July.