Minemakers Signs MOU With Senegalese Equity Partner for Direct Investment of AU$15.6 Million

Minemakers (ASX:MAK) announced that it has signed a memorandum of understanding (MOU) with its Senegalese equity partner Mimran Natural Resources to held fund and accelerate the Baobab phosphate project beyond the current small mine permit.
Highlights of the MOU, as quoted in the press release:

Memorandum of Understanding for the inclusion of a Senegalese equity partner, Mimran Natural Resources:

• Direct investment in Baobab Phosphate Project of US$11.25m (A$15.6m) for 20% of the project
• Direct investment to qualify as Senegalese investor under mining code • Minemakers to place 19.9% of stock with Mimran Natural Resources at VWAP plus 10% premium
• Combined total new funding of approximately A$28m
• Surplus funds to be deployed to accelerate development of the Baobab Phosphate Project beyond the current small mine permit

If completed, the BMCC Investment and Placement will deliver approximately A$28 million in gross proceeds. The additional funding will ensure the development of the Baobab Phosphate Project small mine is fully funded from a capital and working capital perspective and the majority of funds raised will be available for the exploration and project development of the Baobab Project beyond the small mine. The parties expect that the introduction of MNR as a shareholder of BMCC will satisfy the requirement in the Senegalese mining code for Minemakers to have a Senegalese equity partner in order to expand beyond a Small Mine Permit (“SMP”). Immediately following completion of the BMCC Investment, Mr David Mimran will be appointed to the board of BMCC.

Cliff Lawrenson, managing director and CEO of Minemakers, commented:

The opportunity to introduce a highly regarded and financially substantial Senegalese partner for the Baobab Project is of huge benefit to Minemakers. The new funding, in addition to Minemakers existing cash, not only provides for the total development and working capital requirements of the Baobab Phosphate Project as a small mine, it also provides substantial surplus funds which will be directed towards the exploration and development of the Baobab Project beyond the SMP. We continue to see great potential in the Baobab Phosphate Project and this development allows us to move to a full mine permit in parallel with commencing mining as a small mine. The SMP covers 5km2 out of our current 1553km2 tenements. Having MNR as a project partner and Minemakers shareholder ensures alignment of interests for all shareholders and complements our existing strong relationships within Senegal.

Click here to read the full Minemakers (ASX:MAK) press release.