Armada Metals (ASX:AMM) has signed a binding term sheet with Brazilian explorer Antares Minerais Estratégicos, to acquire legal ownership of 16,750 hectares of lithium exploration permits in Minas Gerais, Brazil.
The acquisition comprises 14 mineral rights divided into 4 blocks, namely the Agua Boa, Rio Doce, Resplendor, and Mendes Pimentel projects.
Armada will pay Antares a deposit of $50,000 on execution of the binding term sheet to secure exclusivity, followed by a $100,000 commitment fee upon completing satisfactory due diligence.
Subject to the completion of due diligence, Armada will issue 26 million fully paid ordinary shares to Antares, at transaction completion. The new shares will be escrowed for various periods up to 9 months following the commitment fee payment.
Armada says it commits to investing a minimum of $500,000 on exploration works on the permits during the first year.
“The area in Brazil is attracting significant exploration attention for the potential discovery of lithium-bearing pegmatites, with a number of other operators in the region and known occurrences“
Non-Executive Chairman Rick Anthon says the company is diversifying itself geographically and into lithium while remaining in the critical metals space.
“The area in Brazil is attracting significant exploration attention for the potential discovery of lithium-bearing pegmatites, with a number of other operators in the region and known occurrences.
We can also call upon our in-house experience with lithium and the South American continent. This new planned acquisition, along with our nickel projects in Africa, especially the Bend Nickel Project in Zimbabwe where we are currently drilling and results are expected soon.”
Armada Metals is a nickel and copper explorer focused on green metals for the future. The company has assets in Gabon, Zimbabwe, and Brazil.
As of 30 September 2023, the company had $2.069 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Armada Metals