Kaboko Mining (ASX: KAB) has drawn a further A$1 million of the $10 million prepayment debt facility and long term manganese offtake agreement with Noble Resources International, a subsidiary of Noble Resources.
This draw down has been made in advance of the confirmation of licensing conditions in relation to the Northern Manganese Project at Mansa in northern Zambia.
Kaboko expects that the confirmation of the licences will be made upon the re-opening of the relevant legal and regulatory offices in Zambia, at which point in time $3 million will be advanced on or about 31 January 2013.
The company will then be fully funded into high grade manganese production at its proposed first open cast mine, with first delivery of manganese ore under the offtake agreement slated for the June quarter of 2013.
The $4 million provides the company with all the forecast funding necessary to complete the mine development and associated plant and equipment purchases at its Northern Manganese Project and commence deliveries of high grade manganese ore to Noble.
Tokkas Van Heerden, chief executive officer of Kaboko Mining, commented: "This funding support from Noble along with the appointment of their representative, Papi Molastane, to the Board of Directors, provides strong support to the company as it accelerates the development and mining of its high grade manganese projects."
Preliminary mine plans have been completed at the project with initial planned run-of-mine production of 2,500 to 5,000 tonnes per month in the June quarter of 2013, ramping up to 10,000 tonnes per month by the end of the year.
Kaboko has, through its subsidiary Impondo Zambia, secured land in the Serenje region on the TAZARA rail line and is currently negotiating participation in the rail line.
Impondo Zambia concluded discussions with Mofed Tanzania, a Zambian government owned logistics service provider situated in Dar es Salaam, which will enable Kaboko to utilise available rail and export facilities.
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