Askari Metals has signed a binding agreement with Earth Dimensions Consulting to acquire an 80% interest in a lithium prospective tenement near the town of Uis in Namibia.
“The significant expansion of the Uis Lithium project underpins the transformational change that is underway for the company as we expand our exposure to the battery metals sector. The initial acquisition of EPL 7345 sat directly in between the Uis mine and the B1/C1 Mining Licence both owned by AfriTin Mining plc. The acquisition of EPL 8535 significantly complements this strategic position as we expand our holding at the Uis Lithium project to more than 300 km2 in an area that can only be described as the best real-estate in Namibian lithium. To acquire a second advanced exploration licence within 2.5 km from an operating mine sharing the same geology and mineralised pegmatites is remarkable, and something that the company is very proud of achieving,” Askari Metals Limited Executive Director, Gino D’Anna said.
“The Uis Lithium project not only boasts exceptional lithium, tantalum, tin and rubidium mineralisation, but is located less than 230 km from the deep water port of Walvis Bay. Infrastructure in this region is readily accessible with a well-maintained network of roads direct to site as well as access to power and water.”
News of the acquisition follows a suite of commercial activity that has seen the explorer seal an agreement with private company LexRox Exploration Services to acquire a 90% stake in its advanced Uis lithium, tantalum and tin project in Namibia.
Much like its newly secured tenement, Uis hosts visible spodumene mineralisation at surface with a previous rock chip sampling program delivering some significant results including 3.1 per cent lithium oxide, 3.2 per cent tin, 452ppm tantalum and 3387ppm rubidium.
It’s proving to be a busy time of year for Askari after recently inking a strategic deal with Shanghai-listed lithium-heavyweight Zhejiang Kanglongda Special Protection Technology.
Zhejiang boasts a market cap of around US$1 billion and also holds a 51% stake in Jiangxi Tiancheng Lithium Industry – a company focused on extracting lithium sulphate solutions.
As part of the tie-up, Zhejiang will assist Askari with downstream lithium processing in addition to providing capital to fund its future development initiatives. In exchange, if Askari commences mining, Zhejiang will be crowned as its preferred offtake partner with the ore sold at market prices.
Askari’s latest battery metal acquisition has bookended a frantic year for the company, which in 12 months has picked up a handful of other lithium projects and demonstrated an almost insatiable appetite for the in-vogue commodity.
The company has its ears pinned back in the hunt for global lithium projects and based on a recent report by Benchmark Minerals it’s not hard to understand why. According to the study, the world will need more than twenty times the amount of lithium than was mined last year to satisfy 2050 demands and Askari is looking to answer the call.
