Magnis Resources Limited (ASX: MNS), domiciled in Sydney, Australia, is a metal and mining company. The company completely owns Nachu Graphite Project (NGP) which is located in South East Tanzania and is engaged in extracting graphite from it. MNS has started the manufacturing of lithium-ion battery (LIB) cells, moving into the battery technology environment. It is further planning to build a few large scale Gigafactories in countries like India, Australia, USA, and Germany.
Today, MNS has released an update over its Nachu Graphite Project. Uranex Tanzania Ltd (Uranex), a subsidiary of MNS, undertook a Compensation Program, in accordance with the guidelines and laws of Tanzania, guiding valuation of assets for resettlement programs and compensation, over the NGP which was completed for all Project Affected Persons (PAP).
In December 2016, the Chief Valuer (CV) approved the main valuation process and signed the Supplementary Valuation Report in July 2018. The report concluded the legal occupancy of the Nachu Graphite Special Mining Licence (SML) land by Uranex in accordance with the Valuation and Valuers (General) Regulations, 2018, an Act Supplementary No.11 dated 23 March 2018. 785 PAP were identified within the SML for Valuation and Resettlement Program to whom a total of TZS 7.4 Billion (~AUD 4.5 million) was paid as compensation for land and assets by November 2018.
The grave sites identified during valuation have been completely relocated to local demarcated village graveyards and compensated by TZS 45.3 Million (~AUD 27 thousand) for providing clear access to the ground and to allow unrestricted ground clearance. This has led to the beginning of activities such as improving access and vegetation clearance.
According to the Government of Tanzania, the work performed by MNS was in a professional and very correct manner, and all the PAP were compensated fairly and timely.
59 households were identified to be inside the SML area and to settle these families MNS has decided to build alternative modern houses outside the SML by acquiring 54 acres of land outside the SML area and has named that village as Nachu Village. A separate ESIA study was completed over the Nachu Village to assess, identify, and focus on enhancing the positive benefits and mitigating the negative impacts of establishing such a village. Uranex has also received the Environmental Certificate and a local District building permit for the resettlement village.
The senior-level MNS representatives have been in conversation with a global engineering group regarding Engineering, Procurement, Construction plus Financing for the NGP which remains commercial in confidence.
Looking at MNS’s stock performance and the return it has posted over the last few months, the stock has generated a positive return of 23.21% during the past three months. It is currently trading at $0.345 (as on 30 January 2019, 03:00 pm AEST) with no change in the price during the day’s performance. MNS has ~611.14 million shares outstanding with the market cap of circa $210.84 million. The 52-week high and low for MNS are marked at $0.520 and $0.255 respectively.
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