Kaboko (ASX:KAB) has rung in first sale and cash flows from a sale of 2,000 tonnes of high-grade Manganese ore from the Mansa mine to the Noble Group under its $10 million pre-pay and offtake agreement.
The ore is currently being loaded on site for delivery in the coming weeks from the Mansa mine in Zambia.
To ramp up sales revenue, Kaboko has drawn down a further US$1.16 million from Tranche B of the $10 million facility for additional key mining plant and equipment to accelerate production from Mansa.
The facility underscores the support from Noble Group for the project and upside at the very high grade manganese mine.
Milestones and Catalysts
- Production is set to increase from 5,000 tonnes per month to in excess of 10,000 tonnes per month.
- A maiden JORC resource is on track for Q3, 2013 with drilling underway
- New high-grade African manganese opportunities have been identified for review.
Kaboko has rapidly brought the Mansa Mine into operation since the completion of the Noble Agreement in March, 2013.
Production from the mine has reached 5,000 tonnes per month, with a current stockpile of 10 000 tonnes high grade manganese on site and a further 22,000 tonnes of alluvial unprocessed overburden being stockpiled.
Initial testing of the first delivery undertaken by independent laboratories returned results of 50% plus manganese from grab samples which are in line with expectations.
Further testing will be undertaken as part of completion of delivery. A second shipment of 2,000 tonnes of high grade manganese will then be loaded for delivery from the existing stockpile on site.
This is value accretive for Kaboko and we expect the share price to move higher on the first sales of high grade manganese ore to Noble.