Askari Metals acquires high-grade lithium project in Namibia: 'Significant pegmatites' pending

High grade lithium, copper and gold explorer, Askari Metals (ASX: AS2) on Thursday announced the completion of the acquisition of EPL 8535 Uis Lithium Project which covers approximately 195 square kilometres in Namibia, Africa.

The broader Uis project covers an area of 308 square kilometres and is located less 5km from the township of Uis, and “represents a significantly under-explored lithium opportunity in a first-ranked jurisdiction in close proximity to key mining infrastructure and services”.

According to the Askari Metals website, the Uis Lithium Project boasts more than 120 mapped pegmatites across the project area, with many of the pegmatites having been mined historically for tin and semi-precious stone.

The Uis project so far

At this stage, Askari has taken an 80% interest in EPL 8535, which fulfils the first condition precedent to the company's subscription agreement with China's Huayou Cobalt.

"Exploration RC drilling is ongoing with significant pegmatites intersected," Askari said in a statement.

"The Company will provide Shareholders with an update on its exploration activities shortly."

Askari noted that acquisition of an initial 90% interest in EPL 7345 is progressing well, and that the company “continues to technically assess and evaluate other complementary projects surrounding the Uis Lithium Project for acquisition”.

The Huayou agreement

Last week, China's Huayou Cobalt, which boasts a market cap of approximately US$12.8 billion, entered into a conditional agreement to invest $2.5 million in Askari.

"Huayou will support Askari in areas of mutual strategic interest with respect to the Company's Namibian assets including providing technical input and guidance on design parameters of the Company's exploration campaigns and downstream lithium processing techniques," the announcement notes.

Interestingly, Huayou acquired Prospect Resources' (ASX: PSC) Arcadia Lithium Mine in Zimbabwe for US$422 million.

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