IM Agriminerals News in Brief 23 – 29 May

By James Sean Dickson
Published: Friday, 29 May 2015

MagIndustries court documents made public; South Boulder changes name to Danakali; Tunisia to conduct study on phosphate mine.

The search warrant document used to enter the headquarters of TSX-listed potash junior MagIndustries Corp. earlier this year has been made public. The paper details a number of alleged improper payments by company officials.

The search warrant document details "reasonable grounds" to believe that an offence was committed. Bribes were allegedly paid by company officials in an effort to advance the its Mengo potash project in the Republic of Congo

MagIndustries’ former CEO, now director, Longbo Chen, and colleagues Jin Zhongping, Jun Tian and Fuliang Wang are believed to have bribed a foreign public official, committed fraud on MagIndustries’ investors and conspired to commit an indictable offence according to the document.

The search of the headquarters by the Royal Canadian Mounted Police was instigated by a former MagIndustries subsidiary employee providing a video statement containing allegations of an improper Canadian dollar (C$) 10,040 ($8,057*) payment to an unnamed Congolese official and C$2,008 to the delegation.

The search warrant suggested that MagIndustries had used the funds to authorise the removal of private land for public use by the government without the consent of the owners. MagIndustries is currently in default.

ASX-listed South Boulder Mines Ltd is to change its name to Danakali Ltd, the company’s managing director, Paul Donaldson has told IM.

The name change – taken from the Danakil depression location of the company’s Colluli project and the most common word for potassium in countries to the east of Europe, including Germany and Russia –was agreed at the company’s recently held annual general meeting (AGM).

South Boulder is the joint owner of the Colluli sulphate of potash (SOP) project in Eritrea, which hosts a 1.3bn tonne potassium-bearing salts resource, 97% of which is measured and indicated.

A study is to be conducted on phosphate extraction at the Sra Ouertaine mine in the governorate of Kef in Tunisia, the country’s Minister of Industry, Energy and Mining, Zakaria Hamad, has said.

The study will look into the economic, technical and regulatory hurdles and requirements for the mining opportunity, according to African news source allAfrica.

Tunisia has a long history of phosphate production, but the industry in the country has suffered in the wake of the Arab spring protests, which brought down the country’s former leader, Zine El Abidine Ben Ali.

IM reported in May that the country’s main producer, Compagnie des Phosphates de Gafsa had been forced to suspend phosphate rock production entirely.

*Conversion made May 2015