Staff Writer
WINDHOEK, May 4 — Askari Metals, a mining company based in Namibia, is set to accelerate its lithium exploration at its Uis project in the country. This is after meeting the conditions set out for the company to receive $2.5 million in strategic equity investment from global battery materials supplier Huayou International Resources. The Chinese firm is set to subscribe to 4.5 million fully-paid ordinary shares in Askari at an issue price of 55 cents per share, and will also receive one free attaching option for every three shares purchased. The options have an exercise price of 25 cents and an expiry date of October 31 next year.
Zhejiang Huayou Cobalt, the ultimate holding company of Huayou, is a tier-one global lithium battery and cobalt materials supplier, with a market capitalisation of about AU$18 billion. The company intends to increase its stake in Askari to 9.9% and will have the option to appoint a member to Askari’s board at that point. It will also support Askari through the provision of technical input and guidance for continued exploration, development, and mine construction, in addition to downstream lithium processing.
Askari’s Uis lithium project covers an area of 308 square kilometres in a highly-mineralised, spodumene-rich pegmatite belt with a history of prior production and exploration success. The company says its project holds exceptional potential, as identified by due diligence sample results and a high number of pegmatites exposed at the surface, ranging from a few meters in width to more than 50m wide.
The Uis lithium project sits less than 5km from the township of Uis and less than 2.5km from Andrada’s operating lithium-tin-tantalum mine in west-central Namibia. Andrada’s Uis mine has resources of 81 million tonnes of 0.73% lithium oxide, 0.15% tin, and 0.14% rubidium. It gives the mine a total resource metal content of 1.45 million tonnes of lithium carbonate equivalent, 120,000 tonnes of tin metal, and 109,400 tonnes of rubidium with substantial tantalum.
With the involvement of Huayou International Resources, Askari Metals can now confidently expedite its exploration plans for its Uis lithium project. This is not the first lithium project Huayou has invested in, as it acquired the Arcadia lithium project in Zimbabwe last year for $422 million. With its vast experience in mine construction and operation, Huayou is set to play an active role in the growth of Askari, and this strategic partnership could have significant benefits for both companies in the long run. – Namibia Daily News
