Bushveld Minerals (LON:BMN) issued an operational update on its subsidiary, Lemur Holdings, sending shares up.

The company said it has finished reviewing the power part of Imaloto, and has now commenced evaluating the coal mine aspect.

Bushveld Minerals also said that it had completed due diligence for the project preparation finance with a lender, and continues to engage with lenders on project financing.

Lemur Holdings is the company’s coal and power subsidiary.

Prince Nyati, CEO of Lemur Holdings Limited, commented:

“The completion and review of the Bankable Feasibility Study for the power component of the Imaloto Project represents a key milestone achieved as we press ahead in ensuring Lemur delivers on the potential of the Imaloto Project. The Project’s bankable feasibility study shows that the Imaloto Project is feasible and can deliver significant economic returns. More importantly, the Imaloto power project is the most advanced Independent Power Project (“IPP”) baseload project in Madagascar.

He continued: “It will have transformational developmental benefits for the country’s southwest region, where the government has already implemented significant road infrastructure expansion. The coal reserve and transmission line is capable to support the generation capacity in excess of 60MW in the medium to long term as suppressed demand is unlocked in the region.

Bushveld Minerals is a vanadium producer. The firm is listed on the AIM-market of the London Stock Exchange. Its operations are focused in South Africa and Madagascar.

Shares in Bushveld Minerals are currently +1.74% as of 10:41AM (GMT).