Zamanco Minerals (ASX: ZAM) has entered into an Exploration and Mining Rights Agreement with the Option to Purchase a number of manganese tenements in Zambia.
The agreement was entered into with Jazzman Chikwakwa, the holder of licenses which cover a prospective manganese area in the Central Province of Zambia.
From commencement, Zamanco has the rights to explore and mine the tenements, with a royalty of US$10 per tonne payable on ore mined and beneficiated.
Zamanco is also provided with an exclusive option to purchase the manganese mineral rights at a price of US$2 million, should an inferred resource of over 1 million tonnes of manganese ore, grading at least 40% manganese, be measured.
The price may be adjusted according should the tonnage or grade be under these thresholds.
Following satisfaction of conditions precedent, Zamanco will embark on a soil sampling program to delineate the extent of targeted manganese veins on the tenements, to be followed by a resource definition drilling campaign.
Zambia is linked to ports along the African coast, which would greatly enhance the economics of manganese export operations for Zamanco.
The company is capitalised at around $5 million, and is well funded with around $3.5 million in cash.