- Askari Metals (AS2) signs a binding heads of agreement with LexRox Exploration Services to acquire a 90 per cent interest in the Uis Project in Namibia, Africa
- The project possesses more than 80 mapped pegmatites with previous sampling encountering up to 3.1 per cent lithium oxide, 3.2 per cent tin and 3387 ppm rubidium
- To acquire the 90 per cent interest, Askari will pay $100,000 in cash within five business days and issue $1.05 million worth of shares within seven days of settlement
- Askari will undertake a reverse circulation (RC) program with up to 10,000 metres planned to test the mineralisation of the pegmatites beneath the surface
- Shares in Askari are up 5.32 per cent and trading at 49.5 cents at 11:58 am AEDT
Askari Metals (AS2) has signed a binding heads of agreement with LexRox Exploration Services to acquire a 90 per cent interest in the Uis lithium-tantalum-tin project.
The 113.53 square kilometre project is located in Namibia, Africa, and possesses more than 80 mapped pegmatites, many of which have been historically mined for tin and semi-precious stone.
In July, high-grade pegmatites were collected with up to 3.1 per cent lithium oxide, 3.2 per cent tin, 452 parts per million (ppm) tantalum, and 3387 ppm rubidium collected.
As part of the due diligence, field sampling is underway with more than 150 samples collected to date.
To acquire the 90 per cent interest, Askari will pay $100,000 in cash within five business days and issue $1.05 million worth of shares within seven days of settlement.
Additionally, $450,000 worth of shares will be issued subject to the completion of a reverse circulation (RC) drilling program no less than 400 metres, and $750,000 worth of shares upon the release of a JORC-compliant resource of more than five million tonnes.
A 1.5 per cent net smelter return will be granted to LexRox.
The acquisition is subject to shareholder approval with a shareholder meeting planned for late December or early January.
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 a RC program 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,” 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 are planning to commence an RC drilling campaign of up to 10,000 metres starting with a first phase of 3000 metres almost immediately.”
Shares in Askari were up 5.32 per cent and trading at 49.5 cents at 11:57 am AEDT.