Australian copper-gold exploration company Askari Metals (ASX:AS2) has entered into a binding agreement to acquire the remaining 10% interest in EPL 7345 located within the Uis Lithium Project in Namibia.
The company entered into the agreement with Jenny Eliane van der Walt to acquire the remaining 10% interest, which will enable it to consolidate its interest in the tenement without any minority shareholders, and notes it is an ‘important’ strategic decision for the company.
Pursuant to the binding agreement between Askari and van der Walt, Askari will acquire the remaining 10% interest in Kokerboom Mineral Processing through payment in the amount of $10,000 cash within 5 business days of executing the agreement and will issue $105,000 worth of fully paid ordinary shares within 7 days of settlement.
Askari will also issue $45,000 worth of shares subject to the completion of a reverse circulation (RC) drilling program at the licence of no less than 4,000m where at least 10 RC drillholes intersects a mineralised intervals containing a minimum lithium-oxide (Li2O) grade of 10% Li2O metre across not less than 10 individual drillholes anywhere over the licence within 12 months of execution of this agreement.
The company will issue a further $75,000 worth of shares as part of a second milestone payment subject to Askari announcing a JORC compliant resource of more than 5 million tonnes @ 1% Li2O on the licence within 24 months of executing the agreement.
The second milestone payment will be issued within 7 business days of the satisfaction of milestone 2 at a deemed issue price equal to the 10-day volume weighted average price (VWAP) prior to the day on which the relevant resource is announced to ASX by the purchaser.
The agreement further stipulates that van der Walt will be granted a 0.15% net smelter royalty (NSR) return on all minerals produced from the licence by Askari.
Askari reports that 50% of the initial shares will be subject to a 6-month voluntary escrow period from their share date of issue; 25% of the initial shares will be subject to a 3-month voluntary escrow period from their date of issue; and 25% of the initial shares will not be subject to any escrow from their date of issue.
In the event that milestone one is not achieved, but Askari continues with exploration and declares an mineral resource, 100% of the milestone one shares will be issued to the vendor upon the issue of the milestone two shares on the same terms as they would have been issued.
Completion of the acquisition is conditional upon the parties obtaining all necessary shareholders, or regulatory approvals required to allow the parties to lawfully complete the matters outlined in the agreement.
“We see incredible upside and opportunity in Namibia. Askari is leading the lithium charge out of Namibia”
Commenting on the agreement, Askari Metals Executive Director, Gino D’Anna, says: “The acquisition of the remaining 10% interest in EPL 7345 is an important strategic decision for Askari Metals. Our strategy is well defined as we continue to consolidate significant exploration projects along the Uis Pegmatite Belt and systematically explore these areas adding value to our projects with tangible results.
As a company we are continuing to technically evaluate a number of other project areas along the Uis Pegmatite Belt to further consolidate the region and expand our strategic landholding. We see incredible upside and opportunity in Namibia. Askari is leading the lithium charge out of Namibia.”
Also pursuant to the terms of the binding agreement between the company and LeRox Exploration Services and between Askari and van der Walt, the company has incorporated a local Namibian subsidiary which will own a 100% interest in Kokerboom Mineral Processing which owns 100% of EPL 7345
Askari reports exploration RC drilling is continuing on EPL 7345 with several ‘significant’ pegmatites intersected. The previously announced project wide detailed mapping and sampling campaign being conducted by Earthlab Technical is nearing completion with the team to be mobilised to EPL 8535 in the coming weeks.
The company says several new thick outcropping pegmatite targets have been identified by the field mapping team which will be drill tested in future RC exploration programs to be completed at EPL 7345.
Askari Metals is an Australian battery and precious metals exploration and development company focused on its portfolio of projects across Australia and Namibia, Africa.
The company currently holds the Yarrie Lithium, Hillside Lithium, Myrnas Hill Lithium, Horry Copper, Callawa Copper, Burracoppin Gold, Mt Maguire Gold and Base Metal, and Red Peak Rare Earth Element (REE) projects in Western Australia.
The company also holds the Barrow Creek Lithium Project in the Northern Territory, the Springdale Copper-Gold Project in New South Wales, and the Uis Lithium Project in Namibia.
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