BY PORTIA NKANI
Boseto mine, near Maun is set to return to production in the first quarter of 2021, Sunday Standard has been informed.
This comes after the company that owns the mine Khoemacau announced in February 2019 that they have raised over P6 billion to complete associated mining infrastructure projects that will see one of the country’s biggest known reserve complexes join production line.
This week it emerged that the Company has completed the camp upgrade at Boseto mine to allow for contractor accommodation during this time. It is also said that some work has also commenced on the access road between Zone 5 and Boseto while bush clearing of terraces and significantly the excavation of the box cut has also commenced.
The latest developments follows reports that Royal Gold, Incorporation, US based precious metals company has entered into a life of mine purchase and sale agreement for silver produced from the Toteng base copper mine.
Khoemacau resident Executive Director, Boikobo Paya confirmed the deal to Sunday Standard, adding that Royal Gold is to provide US$265 million of funding via a silver purchase and sale agreement. The silver stream is split into two tranches: US$212 million available to be drawn after closing and up to an additional US$53 million will be available to draw Khoemacau’s election, subject to certain conditions.
Paya further said, if the Company elects to trigger the up to US$53 million option for the second tranche, it will deliver up to an additional 20 percent of the payable silver production for a total of 100 percent.
According to Paya, the stream rate will decrease by 50 percent once 32 million ounces of cumulative silver has been delivered to Royal Gold, or 40 million cumulative silver ounces if the Company elects to draw the full amount.