North Atlantic Mining Associates Ltd. unit African Minerals Ventures Ltd. secured a 51% earn-in right for the Busumbu phosphate project in Uganda from Black Mountain Resources Ltd. and Namekara Mining Co.
The company will be required to spend US$3 million on the project over three years, while Black Mountain retains a 24% free-carried interest.
As part of its recent restructuring, Black Mountain, which will be renamed Hipo Resources Ltd., retained a 75% earn-in right for Busumbu and sold its interest in the Namekara vermiculite mine in Uganda in exchange for the retirement of about A$5.5 million of debt.
African Minerals is also required to take the project into commercial production within two years after the initial three-year earn-in period. Black Mountain said June 15 that it is also in advanced negotiations with two exploration partners for copper and rare earths.