The acquisition proposal was approved by the South African Department of Mineral and allows the company with a majority interest in Limpopo Province.
Midwinter had announced the transaction on 10 June 2010 and has since enhanced its holding in the area.
A 28km long magnetic anomaly and minor outcrop was identified before the agreement was signed, which demonstrated the area’s iron ore potential.
Further works undertaken by Midwinter have identified further iron occurrences throughout the province, over a length of 270km.
Midwinter, as per the terms of the agreement is now required to issue a further 5 million shares to increase its interest in Capricorn Iron to 70%.
The Nkgapu Group, Midwinter’s partners in the Limpopo region, will hold the remaining 30% stake.
In the interim, drilling on a granted tenure at the company’s Northern Lights iron ore project in the Limpopo district of South Africa has resulted in production of high quality magnetite concentrates.
Magnetic concentrate exceeds 69% Fe, with 80-90% of iron that can be recovered.
