PMM asserts full ownership of Magambazi Gold Mine, demands retraction from East Africa Metals

Dar es Salaam. Tanzanian mining company PMM Mining Company has issued a public notice asserting its complete ownership of the Magambazi Mining Project in Handeni, Tanga. PMM Mining Company acquired the project from East Africa Metals in October 2020.

PMM has warned that anyone dealing with East Africa Metals should reaffirm PMM’s position as the sole owner and has demanded that East Africa Metals retract the July 26 statement about the Magambazi mining project.

The notice follows an announcement by the Canadian company East Africa Metals, stating that it was negotiating a Memorandum of Understanding (MOU) with JinJiu Hong Kong International Investment Ltd to develop the project.

Documents reviewed by The Citizen show that PMM Mining Company Limited, fully acquired the project after paying East Africa Metals an agreed purchase price.

Specifically, East Africa Metals, which previously owned Canaco and Denwill, received $2 million, while Tanzania Gold Fields (TZGF), which had a prior agreement with East Africa Metals, was paid $1.6 million.

A share purchase agreement, governed by Tanzanian law, was signed on October 20, 2020. Following this, the then Mining Commission's executive secretary, Yahaya Samamba (now the Ministry’s Permanent Secretary), approved the change of control on December 16, 2020, granting full ownership of the project to PMM Mining Company and its associates.

East Africa Metals in a statement claimed that in December 2022, due to PMM's alleged lack of performance, non-compliance with the Mining License Agreement, and multiple breaches of agreements, the Ministry of Minerals suspended PMM's operations and the renewal of the mining licenses.

According to the statement, JinJiu, the new partners, have committed to producing a minimum of 10,000 ounces of gold in the first year, increasing to at least 40,000 ounces annually from the fourth year onward.

 “East Africa Metals will receive 30 percent of the gold produced from the project at production cost plus 15 percent, as per a gold purchase agreement to be signed by the parties,” the statement reads.

In response, PMM issued a notice, which The Citizen has reviewed, asserting that it owns 100 percent of the Magambazi Mining Project.

 The notice states: “The announcement made by East Africa Metals (Canaco Tanzania) is false and misleading to the international mining community and all stakeholders involved. This misinformation appears aimed at stock gains, investment, or enhancing company portfolio status.”

The notice further states that PMM at no occasion authorised East Africa Metals (Canaco Tanzania) to market their fully owned Handeni mine on their website or use their portfolio for meetings with the Tanzanian Ministry or potential developers.

“The announcement made on July 26, 2024, by East Africa Metals was issued without PMM's permission or awareness. PMM is the sole shareholder and decision-maker regarding the Handeni Magambazi mine,” it continues.

The Citizen has independently confirmed that no meeting took place between the Canadian company and the Ministry of Minerals regarding the mine's future.

 Eng. Yahaya Samamba, the ministry’s Permanent Secretary, stated that neither East Africa Metals nor PMM Mining Company representatives met with the Ministry on the dates mentioned in the Canadian company's statement.

 “What I can say is that there was no meeting between us and either party,” said the Permanent Secretary.

Meanwhile, East Africa Metals had posted on social media on July 22, announcing their return to Tanzania and promising exciting developments. Another post on X (formerly Twitter) on July 23 mentioned meetings with prospective partners at SeaCliff Hotel in Dar es Salaam.