JSE-listed Sable Platinum has advised its shareholders that Sable has entered into a letter agreement with Mr Atang Makgekgenene in its efforts to acquire 4% of the equity interest in Global Initiative Proprietary.

The company revealed that the agreed purchase price for the equity interest in Global is US$4 million, with an option to acquire a further 6%, 5% and 11% of the equity interest in Global from Makgekgenene.

Global has the rights to the tailings and slag dump at the BCL Limiteds Selebi Phikwe nickel and copper mine situated in Botswana.

Sable explained that its board is satisfied that because the Selebi Phikwe operation has been producing slag for some 40 years there is significant potential for metals including iron in the slag heap and Sable is investigating alternative methods to economically recover any such metals.

Further, the company has already started investigating the possibility of mining vanadium and iron ore present on four of the five project areas on the Western Limb of the Bushveld Complex in the North West Province, South Africa and said that it is believed the development of these properties will provide an earlier route to cash flow.

Sable pointed out that the Selebi Phikwe project is a logical extension of this strategy and that early assessment of this project indicates that the acquisition of up to 26% of Global and a management contract on the Selebi Phikwe project will provide a significant uplift to its shareholders.