Multinational explorer Askari Metals has expanded its exploration hopes in Namibia after acquiring a key patch of dirt abutting its Uis lithium project, bringing its strategic footprint to more than 308 square kilometres in the distinguished mineral postcode.
Following a binding heads of agreement signed with Earth Dimensions Consulting last December, Askari has incorporated a local Namibian subsidiary to acquire an 80 per cent interest in the lithium prospective tenement, EPL 8535. The remaining 20 per cent is retained by Earth Dimensions Consulting.
Under the agreement, Askari issued four million ordinary shares to Earth Dimensions Consulting, with 20 per cent of the offering fully-tradeable and the rest subject to a 12-month escrow period.
At today’s trading price of $0.45 per share, the exchange represents a $1.8 million transaction. Importantly, the acquisition also satisfies the first conditional investment agreement with global giant, Zhejiang Huayou Cobalt.
Askari revealed earlier this month that it had entered into a subscription agreement with Huayou through the Chinese high-tech battery materials giant’s Hong Kong subsidiary, Huayou International Resources. The deal came neatly packaged in a subscription for 4.5 million shares at an issue price of $0.55 per share, tipping $2.5 million into the company’s till.
Huayou is a leading manufacturer of new-energy battery materials in China and is listed on the Shanghai Stock Exchange with a current market capitalisation of a whopping US$12.8 billion (AU$19.1 billion).
Further adding to its coffers, Askari has raised $3.25 million through the issue of 6.5 million shares, at an issue price of $0.50 per share, to select Australian and international institutional investors.
With the ink barely set on the purchase agreement for its recently-acquired site, the battery metals explorer wasted no time kicking off its maiden drilling program. It is midway through a 40-hole probe which will see 3000m of drilling pepper a selection of outcropping pegmatites at depth, where earlier rock-chip sampling returned grades up to 3.3 per cent lithium oxide, 3.2 per cent tin, 4280 parts per million tantalum and 7980ppm rubidium.
Intriguingly, management says drilling has already hit multiple thick pegmatite intersections.
On the company’s neighbouring tenement, a second rig is wrapping up a 4000m phase-two drilling program targeting a selection of recently-discovered pegmatites that are reported to have visible lithium mineralisation at surface.
The company finished its first drill campaign at the African operation last December, completing 59 RC holes for 3017m as part of an overall 10,000m program. Assays are still to come.
Askari says the acquisition of a 90 per cent interest in the EPLA7345 tenure from LexRox Exploration Services is expected to be completed soon.
Reuters recently reported global demand for lithium batteries is expected to surge more than fivefold by 2030 as more people opt for electric vehicles and energy storage systems. Benchmark Mineral Intelligence notes 40 new lithium mines will be needed by 2030 to meet burgeoning demand in the lithium-battery market.
With more than $5.7 million set to reach Askari’s bank account in the coming months, the junior explorer is well-funded to fast-track exploration at its Uis lithium project in Namibia.
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By Helen Barling
