Askari Metals has signed a binding heads of agreement (HoA) with Earth Dimensions Consulting to acquire an 80% stake in the latter, which owns 100% of Exclusive Prospecting Licence (EPL) 8535 in Namibia.

The lithium prospective tenement is located near the town of Uis. It covers an area of about 195km2, and is directly located along strike of the AfriTin Mining plc B1/C1 Mining Licence and the Uis lithium project.

Askari Metals is the owner of the Uis lithium project.

With the acquisition of EPL 8535, the Australian mining company expands the Uis project to nearly 308km2 in a prime pegmatite mineral field, which is said to contain high-grade lithium, tin, tantalum, and rubidium mineralisation.

As a part of its initial field evaluation programme in October 2022, Askari Metals collected high-grade pegmatite samples from the surface of the new tenement.

The seven samples collected were analysed to find the presence of various elements including lithium, caesium, tin, rubidium, niobium, and tantalum.

Askari Metals is fully permitted to conduct a reverse circulation (RC) drilling campaign of up to 3,500m to test the mineralisation of the pegmatites beneath the surface at EPL 8535.

The drilling campaign, which is to be conducted across three phases, is expected to begin in January 2023.

Askari Metals executive director Gino D’Anna said: “The acquisition of EPL 8535 significantly complements this strategic position as we expand our holding at the Uis Lithium Project to more than 300km2 in an area that can only be described as the best real-estate in Namibian Lithium.

“To acquire a second advanced exploration licence within 2.5km from an operating mine sharing the same geology and mineralised pegmatites is remarkable, and something that the Company is very proud of achieving.”

The transaction is subject to shareholder approval, which is expected to take place in January 2023.

Recently, Askari Metals signed a non-binding partnership agreement with Zhejiang Kanglongda Special Protection Technology to accelerate the development of its Australia-based lithium assets, Barrow Creek and Eastern Pilbara Lithium.