Askari acquires Advanced Lithium-Tantalum-Tin Project in Namibia, Africa

Askari Metals (ASX: AS2) has flagged plans to evolve into a focused lithium exploration and development company after entering a binding Heads of Agreement (HoA) with Namibia-based LexRox Exploration Services (Pty) Ltd (LexRox).

Management expects the acquisition of a 90% interest in the advanced Uis Lithium-Tantalum-Tin Project (EPL 7345) located near the town of Uis in Namibia, Africa, to mark the beginning of the company’s growing footprint in Namibia.

Lithium projects in Namibia will be explored in tandem with its lithium projects located in Australia and a potential spin out of the Australian-based gold and copper assets is planned for 2023.

Shareholder dilution minimised

Subject to shareholder approval at a general meeting of shareholders late-December 2022, the acquisition of the Uis Lithium-Tantalum-Tin project has been structured to minimise upfront dilution to shareholders.

Deferred consideration performance shares will used to ensure vendors are invested to the performance and outcome of the project.

Immediate drilling

The company is planning to conduct a RC drilling campaign of up to 10,000m testing the mineralisation of the pegmatites beneath the surface.

With approvals and permits already signed off, drilling is expected to commence immediately across three phases with 3,000m.

High grade pegmatite samples

The Uis Lithium-Tantalum-Tin project is located less than 2.5km from the operating Uis Tin-Tantalum-Lithium mine owned by AfriTin Mining plc (LSE. ATM) which hosts a JORC (2012) mineral resource of 71.54Mt @ 0.63% Li2O, 0.134% Sn and 85ppm Ta.

More than 80 pegmatites have been mapped across the project area, with many of the pegmatites having been mined historically for tin and semi-precious stone.

High-grade pegmatite samples were collected from surface by LexRox in July 2022 with assay results including:

• Lithium rock chip samples with assay results up to 3.1% Li2O as well as 1.1% Li2O and several other assay results above 0.5% Li2O from surface.

• Tin rock chip samples with assay results up to 3.2% Sn as well as 1.3% Sn.

• Tantalum rock chip samples with assay results up to 452ppm Ta.

• Rubidium rock chip samples with assay results up to 3,387ppm Rb.

A field sampling campaign is already underway as part of the due diligence investigations of the Company with more than 150 samples collected to date.

Example of altered spodumene identified at surface at the large mine working on EPL 7345 (Uis Lithium-Tantalum-Tin Project). Note: Visual estimates should not be considered a proxy or substitute for laboratory analysis. Assay results are expected to be received in late November 2022, subject to turnaround times at the laboratory.

Transformational period

Askari executive director, Gino D’Anna believes the acquisition of the Uis Lithium-Tantalum-Tin Project signifies a transformational period as the company expands exposure to the battery metals sector.

“This project not only boasts exceptional lithium mineralisation but is located less than 230km from the deep-water port of Walvis Bay,” D’Anna noted.

“Infrastructure in this region is readily accessible with a well-maintained network of roads direct to site as well as access to power and water.”

Askari Metals was up 6.38% in early morning trading.

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