Patriot Lithium (ASX:PAT) has entered into a binding option agreement with global mining services provider Array Metals and Natural Resources to acquire 80% of the Katwaro Copper Project in Zambia.
The Katwaro Project lies 10km north-east from Mumbwa and covers 400 hectares covered by small-scale mining licences. Within the tenement there is a historical open pit mine exposing copper-bearing metasediments along 100m strike, which is open ended.
Under the agreement, Patriot Lithium, which has a market capitalisation of $4.67 million, will pay US$25,000 ($37,217.65) to Array Metals for a 12-month exclusive option period.
If Patriot Lithium chooses to exercise the option, both companies will form a special purpose vehicle (SPV). Array Metals will transfer 100% of the project into the SPV, after which Patriot Lithium will pay US$250,000 to the company.
During this period, Patriot Lithium will solely fund the exploration and feasibility costs for Katwaro.
If the SPV delineates an indicated resource of 5 million tonnes at 2% copper, the company will pay Array Metals US$400,000. If the SPV also delineates an indicated resource of an additional 5 million tonnes at 2% copper, the company will pay an additional US$400,000.
Subject to completing further due diligence during the option period, Patriot Lithium believes the project will complement its existing lithium assets and provide jurisdictional diversity, with respect to native title, sovereign risk, and alternative weather windows for exploration.
In Q4 of 2024, Patriot Lithium intends to review available historical and current exploration data, as well as conduct detailed geological surface mapping and geochemical surveys.
This news comes after the company had to cancel a maiden drilling program at its Gorman Lithium Project in Canada, due to a First Nation Band decision to refuse land access.
While Patriot Lithium continues to negotiate land access, the company decided to expand its project portfolio into other jurisdictions, starting with the acquisition of the option to acquire Katwaro.
The Gorman Lithium Project is along strike from Frontier Lithium’s (TSX-V:FL) PAK-Spark Lithium Project, which is considered one of North America’s “largest and highest grade” lithium deposits.
Patriot Lithium says copper, like lithium, is an essential ingredient in the battery metals complex and for many other industrial uses.
Zambia is host to a substantial share of global copper resources. The company says it is an established mining jurisdiction, with a history of supporting mineral exploration, mining, and product export.
Meanwhile, due to the onset of winter in the Northern Hemisphere, Patriot Lithium has limited exploration activity proposed across its North American assets over Q4 2024.
However, the company intends to continue its negotiations around land access and plan for the restart of activities once the spring season enables ground access.
Patriot Lithium aims to systematically explore lithium projects across North America and prudently grow its portfolio with targeted merger and acquisition greenfield exploration.
Array Metals is a mining services firm with a team of engineers, geologists, surveyors, drilling and blasting experts, and management personnel, offering assorted technical consultancy services and solutions to meet our clients’ requirements. Since its inception, it has experienced a steady growth in the field of mineral exploration.
Write to Aaliyah Rogan at Mining.com.au
Images: Patriot Lithium & Array
