Savannah Resources PLC (LON:SAV) and Rio Tinto PLC (LON:RIO) have agreed to extend the deadline for sorting out their proposed joint Mutamba/Jangamo joint venture in Mozambique.
The two companies have agreed to extend again the long stop date for fulfilment of the conditions precedent of the joint venture from March 31 to June 30, or even later if both parties agree in writing.
The extension will allow further time to fulfil the applicable approval processes.
As announced in June of last year, Rio Tinto International Holdings Limited, a member of the Rio Tinto Group, and AME East Africa Limited, a wholly owned subsidiary of Savannah Resources, intend to combine their adjacent Mutamba, Dongane and Jangamo prospects and Rio Tinto’s Chilubane heavy mineral sands occurrences in a joint venture.
Savannah will be the operator of the joint venture and may earn up to a 51% interest in the combined Mutamba/Jangamo project.
Formation of the joint venture is conditional on approval by the Ministry of Mineral Resources and Energy of the Republic of Mozambique.