Bosai agrees to buy manganese project in north western Guyana

07 November 2016

The Chinese-owned Bosai Minerals Group has agreed to buy a manganese project at Matthews Ridge, North West District from the Canada-headquartered Reunion Gold Corporation for US$10 million.

Under the deal announced by Reunion, it on November 4, 2016 agreed to sell “all of its rights, title and interest” in the project to Bosai which would begin paying 50 percent of the agreed amount when production begins.

“Under the terms of the agreement, Bosai will pay to Reunion a total amount of US$10 million of which US$5 million is payable at closing and US$5 million is to be paid at the rate of US$2.00 per tonne of manganese concentrate or ore shipped from Matthews Ridge once it enters into production,” Reunion said in a statement.

In keeping with the deal, Reunion said it agreed to transfer to Bosai the four prospecting licences (which make up the Matthews Ridge project), the March 2011 Mineral Agreement between Reunion, the Co-Operative Republic of Guyana and the Guyana Geology & Mines Commission (GGMC), and capital assets located at Matthews Ridge.

Reunion, however, noted that the deal would be closed subject to having obtained all required regulatory, shareholders and government approvals and consents, including the approval of the TSX Venture Exchange  and the consent of the GGMC and the government of the Guyana government. “All such approvals and consents are expected to occur over the next few weeks,” Reunion said.

Bosai already mines bauxite at Linden.

Source – Demerare Waves