News

October 09, 2008

The Rating Of Chromex Mining Reflects Acceleration In Both Production And Cash Flow

By Charles Wyatt

When we last wrote about AIM listed Chromex Mining a year ago the company was going through a very frustrating time awaiting the outcome of a dispute with the South African Department of Mines & Energy over rights to the Mecklenburg chrome deposit on the eastern limb of the Bushveld Complex. Nigel Wyatt, who was chief executive at the time, had carried out a positive bankable feasibility study on the project and then applied to have its New Order Prospecting Right changed to a new order Mining Right. Usually this is just a formality so Nigel just about fell off his chair when informed at that late stage that another company was claiming ownership. It would appear that the South African authorities did not smell a rate in the fact that the claimant had waited until Chromex had spent a goodly amount of money on this study before making a move.

It took a while before sanity prevailed – until July this year to be exact - but Nigel stuck to his guns and  finally the mining right was awarded. Apprently a 14 month waiting period is considered the norm by the South African authorities which says something about the state of the country. In the meantime a 51 per cent stake had been purchased in Ilitha Mining (Pty) Limited, which owns the 271 hectare Stellite project and agreement was subsequently reached to buy the balance so...