By Benjamin Wickham
WINDHOEK, March 31 — Multinational explorer Askari Metals is expanding its exploration hopes in Namibia with the acquisition of a key patch of dirt abutting its Uis lithium project. The acquisition brings its strategic footprint to more than 308 square kilometres in the distinguished mineral postcode. Askari has incorporated a local Namibian subsidiary to acquire an 80% interest in the lithium prospective tenement, EPL 8535, after signing a binding head of agreement with Earth Dimensions Consulting last December. The remaining 20% is retained by Earth Dimensions Consulting.
Under the agreement, Askari issued four million ordinary shares to Earth Dimensions Consulting, with 20% 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. The acquisition also satisfies the first conditional investment agreement with global giant, Zhejiang Huayou Cobalt.
Askari recently entered into a subscription agreement with Huayou through the Chinese high-tech battery materials giant’s Hong Kong subsidiary, Huayou International Resources, 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 US$12.8 billion (AU$ 19.1 billion).
The company also 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 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.
The surge in global demand for lithium batteries is expected to increase 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 the acquisition of the EPL 8535 tenure, Askari is well-positioned to meet the growing demand for lithium, with its Uis lithium project in Namibia offering immense potential.
Askari’s drilling program is already underway, with 3000m of drilling pepper for a selection of outcropping pegmatites at depth, where earlier rock-chip sampling returned grades up to 3.3% lithium oxide, 3.2% tin, 4280 parts per million tantalum and 7980ppm rubidium. Management says drilling has already hit multiple thick pegmatite intersections. 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 the 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.
The acquisition of a 90% interest in the EPLA7345 tenure from LexRox Exploration Services is expected to be completed soon. With these acquisitions, Askari is poised to become a leading player in the lithium market, leveraging its strong financial position and extensive exploration footprint to unlock immense value for its shareholders. – Namibia Daily News
