Rift Valley on path to exit Tanzanian gold as it lines up buyers
Mining & Resources
Rift Valley is selling off its Tanzanian gold projects.
Tanzania’s energy and minerals ministry halted the export of unprocessed ore a year ago this month, following President John Magufuli’s call for the construction of more processing plants in the African country.
The government then implemented changes to its Mining Act, including compulsory 16 per cent government ownership of mining companies and the cancellation of retention licences issued to exploration companies under previous legislation.
This has forced junior players to consider the sale of their Tanzanian assets and switch their focus to other countries.
Rift Valley (ASX:RVY) has now struck a deal to sell its Kitongo project for $US550,000 ($698,870) and its Canuck prospecting licence for $US250,000.
A potential buyer has also handed the company a proposal for an option to acquire its Miyabi gold project.
Rift Valley says it is considering the proposal.
Here is a list of ASX stocks with exposure to Tanzania (prices Mar 9):
While there is still uncertainty around the Tanzanian legislation, there have been positive signs emerging for some juniors.
On Friday, Magnis Resources (ASX:MNS) revealed it had secured an agreement with Tanzania that allowed it to retain full ownership of its Nachu graphite project and receive tax breaks.
The Tanzanian government is said to be re-drafting its regulations to address some of the industry’s concerns and provide more clarity.
Rift Valley is now making its Longonjo magnet metal project in Angola a priority after it completed a scoping study late last year that the company says supports further development work.