An Australian-listed company, Askari Metals, has signed a binding agreement with LexRox Exploration Services to acquire a 90% interest in the Uis lithium, tantalum and tin project in Namibia.
As part of the due diligence, field sampling is underway with more than 150 samples collected to date.
To acquire the 90% interest, Askari will pay N$1.2 million in cash within five business days and issue N$12.3 million worth of shares within seven days of settlement.
Additionally, N$5.2 million worth of shares will be issued subject to the completion of a reverse circulation (RC) drilling programme no less than 400 metres, and N$8.7 million worth of shares upon the release of a JORC-compliant resource (a professional code of practice that sets minimum standards for Public Reporting of minerals Exploration Results) of more than five million tonnes.
A 1.5% net smelter return will be granted to LexRox.
The project is near an operating tin, tantalum and lithium mine owned by AfriTin Mining.
The acquisition is subject to shareholder approval with a shareholder meeting planned for late December this year or early January next year.
Further, the acquisition outlines Askari’s intent to evolve into a lithium exploration and development company with the company now aiming to grow its presence in the country.
Askari will undertake an RC programme with up to 10,000 metres planned to test the mineralisation of the pegmatites beneath the surface.
“The acquisition of the Uis lithium-tantalum-tin project signifies a transformational period for the company as we expand our exposure to the battery metals sector,” Askari’s Executive Director Gino D’Anna said.
There are more than 80 mapped pegmatites across the project area with several of them already opened up exposing the quartz core and the target mineralised zone.
We are steadily building the mineralisation model for the project and planning to commence an RC drilling campaign of up to 10,000 metres starting with a first phase of 3,000 metres almost immediately, D’Anna said.
The news of the acquisition comes as Askari struck a strategic deal with Shanghai-listed lithium-heavyweight Zhejiang Kanglongda Special Protection Technology, a company with a market cap of nearly US$1 billion and also holds a controlling interest of 51% in Jiangxi Tiancheng Lithium Industry which specialises in extracting lithium sulphate solution.
Zhejiang Kanglongda will assist the company with lithium chemical downstream processing techniques and opportunities in addition to providing access to capital for future development.
As part of the alliance, should Askari reach the mining stage, its Chinese partner will be provided with a preferred offtake position at market prices.
Askari’s latest lithium deal in Namibia and partnership agreement is a continuation of its battery metals strategy that has seen the company acquire four other lithium projects in 2022 alone.
The International Energy Agency projects demand for the battery metals to be between 13 and 15 times higher by 2040 than last year.
