Chambishi Copper-Cobalt Tailings Project

 

The Chambishi Metals copper and cobalt refinery is located in the well-known copper belt in Zambia and is a primary producer of cathode copper and cobalt. The target resource for the project is a substantial stockpile of refinery residue which contains high levels of residual copper and cobalt. Drilling and subsequent classification of the tailings dam has identified a resource of approximately 1.6 million tonnes at 1.30% copper and 0.21% cobalt. The majority of the resource can be classified as Measured (70%) with the balance regarded as Indicated (30%).

While a feasibility study was submitted to Chambishi Metals, MFL has since determined to sell its share in the project to Muva Metals. Under the agreements entered into with Muva, the proposed sale is conditional upon the establishment by Muva and MFA of the funding required for the development of the Chambishi project, within 120 days of execution of the agreements, and to Muva assuming immediate responsibility for funding of MFA's ongoing activities. The proposed consideration is as follows: A cash settlement of Au$700,000 on confirmation of funding for the Chambishi project. Au$2.2M by way of a fee of $1.50 per tonne of tailings treated by the project Completion of the transaction remains subject to successful funding and subsequent establishment of the Chambishi project. In the intervening period no further funding will be required from the Company. The agreement with Muva places MFL in a position to devote additional focus to the development of the Lucky Break and Barnes Hill nickel projects in Australia, and to pursue other corporate opportunities.