- Baobab Resources' wholly-owned subsidiary Capitol Resources has signed a joint venture agreement with Australian exploration company Metals of Africa for the Changara project in Tete Province, Mozambique.

MTA has entered into the JVA through its 100% subsidiary Afriminas Minerais.

The JVA is conditional upon MTA receiving approval from its shareholders at a meeting of shareholders that will be convened shortly.

Baobab managing director Ben James said: "By combining Baobab's and Metals of Africa's tenure in the Changara area, the entire extent of the highly prospective Rushinga belt can now be more efficiently and effectively explored.

"Metals of Africa's management team has extensive corporate and technical operating experience in southern Africa and we look forward to working with them in developing this exciting corner of Mozambique.

"The joint venture structure allows Baobab to retain a significant interest in the Changara project going forward and also enables the company consolidate its efforts on the Tete pig iron project where the pre-feasibility study is nearing conclusion."

At 9:07am:

[LON:BAO] share price was +0.13p at 8.88p

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