Next Graphite signs land lease
Next Graphite Incorporated, the only potential local graphite miner, recently announced it has negotiated and signed a yearly, renewable land lease to begin exploration and mining throughout Farm Aukam’s 14,000 hectare acre property. The land lease was singed between Next Graphite Incorporated and Gerhard de Meyer, owner of Farm Aukam.
The land lease took effect on 15 July 2014 and is renewable on a yearly basis. Next Graphite also successfully negotiated 12-hour operating shifts during each work day during the week and operation on the weekend. The land lease expands the operations on the property to specifically include all of Next Graphite’s planned operations.
The lease agreement will now make provision for Next Graphite to commission geological studies for a mining re-launch plan which will subsequently be followed by the testing and processing of surface graphite samples. The study is anticipated to be completed in three months’ time as set out by Next Graphite in a presentation.
Activities to be conducted include reclamation, mine development, the required environmental impact assessment, feasibility studies, engineering studies, geological studies, and contamination studies. Next Graphite also reported that the land owner agreed to provide access to a borehole and solar pump for up to 25,000 litres of water per day to support initial mining operations.
The agreement between the land owner and the miner includes a nominal monthly cash compensation, however the land owner also secured a 2% fee on all future revenue derived from Next Graphite’s mining on his farm.
Chief Executive Officer of Next Graphite Incorporated, Cliff Bream said: “Our land lease agreement was the final piece of approval needed to fully begin our operations as a licensed mining company in Namibia.”
“Our negotiations with Mr de Meyer went very smooth and we were most pleased with his approach to help us keep monthly land lease costs low in favour of potentially greater revenues with his negotiated 2% share of our future cash flows. Mr de Meyer also understood the need for us to access water on the property for our production and mining operations. This was a critical component of our negotiations due to the importance of water in graphite mining operations,” Bream concluded.