Australian lithium explorer signs deal to expand Namibian footprint

The binding agreement means the company will acquire the remaining 10% stake of exclusive prospective licence (EPL) 7345. This follows Askari Metals (ASX: AS2) initial acquisition of 90% of EPL 7345, an agreement with LexRox Exploration Services that is due to complete shortly.

Under the terms of these agreements, Kokerboom Mineral Processing Pty Ltd, a local Namibian subsidiary that is wholly owned by Askari, will become 100% owner of EPL 7345. This is part of the Uis Lithium Project, which is located in the Erongo region of central-west Namibia.

What the deal means

Askari’s executive director Gino D’Anna says the strategically important agreement will help consolidate the firm’s interest in the area, without any minority shareholders.

He also notes the company continues to technically evaluate several other project areas along the Uis Pegmatite Belt, with the goal of further consolidating its presence in the region. (Pegmatite is coarse granite volcanic rock that commonly contains several minerals. The Uis pegmatite belt contains Lithium, Niobium, Tantalum.)

“Our strategy is well defined as we continue to consolidate significant exploration projects along the Uis Pegmatite Belt and systematically explore these areas adding value to our projects with tangible results,” D’Anna says

“We see incredible upside and opportunity in Namibia. Askari is leading the lithium charge out of Namibia

What else is happening at Uis Lithium Project

The latest update from Askari indicates exploration reverse circulation drilling is continuing at EPL 7345, with several significant pegmatite finds so far.

The previously announced project-wide detailed mapping and sampling campaign being conducted by Earthlab Technical (as detailed previously on Market Index) is nearing completion. The team is expected to be mobilised to EPL 8535 in the coming weeks.

“A number of new thick outcropping pegmatite targets have been identified by the field mapping team, which will be drill tested in future RC exploration programs to be completed at EPL 7345,” the Askari update states.

Disclaimer: Market Index helps small-cap ASX-listed companies connect with Australian investors through clear and concise articles on key developments. Askari Metals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.