(Ecofin Agency) - On Feb. 19, Black Mountain Resources informed its shareholders that it wants to sell its Namekara vermiculite mine in Uganda, to focus on its phosphate and copper assets. This initiative is part of a restructuration plan, agreed with its major lender Richmond Partners, which requires shareholders’ approval.

Under the agreement terms, Black Mountain is to sell its interest in Namekara in exchange for the retirement of about $A5.5 million of debt, bringing the firm’s debt to $A600,000.

However, the company will still hold 75% interest in Busumbu phosphate project (subject to minimum expenditure obligations) as well as all other “non-vermiculite” assets that are presently held by its subsidiary Namekara Mining Company.

According to Simon Grant-Rennick, Black Mountain’s interim chairman, the Busumbu project is an attractive exploration and development asset that allows the company grow while reducing a significant debt which could have a huge impact early this year.

The ASX-listed company plans to end exploration work underway on the project and begin, in Q3 2018, a pre-feasibility study which will be completed by the end of the year. Furthermore, the company wants to renegotiate its existing agreement with Investmet to invest in phosphate, copper and rare earth’s exploration.