admin
Tapiwanashe Mangwiro-Senior Business Reporter
LONDON-listed Premier African Minerals has signed a binding joint venture agreement with Li3 Resources relating to the latter’s hard-rock lithium assets in Mutare.
Premier African Resources said Li3 Resources will acquire a 50 percent stake in its assets, which are held by Premier’s wholly-owned subsidiary LicoMex Private Ltd.
Premier is an emerging tungsten producer from the RHA Tungsten Mine and is advancing the sizeable Zulu Lithium and Tantalum Project in Zimbabwe.
In addition, the company has an interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia.
The company also holds significant shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world-class asset.
Li3 Resources is a private, lithium focused exploration company founded and backed by senior mining executives who have had prior success in the lithium sector.
Lithium is critical to development of rechargeable lithium-ion batteries that are seen as key to reducing climate-changing carbon emissions created by cars and other forms of transportation.
Worldwide demand for lithium was about 350 000 tonnes (317 517 metric tons) in 2020, but industry estimates project demand will be up to six times greater by 2030.
Zimbabwe, with only a single active mine, is already the world’s fifth largest producer through Bikita Minerals, but being host to Arcadia Lithium project, is home to Africa’s most advanced lithium project.
Lithium is an integral element of the Government’s plans to grow the mining sector to a US$12 billion industry by 2023.
By then, lithium is expected to rake in US$1,5 billion annually.
“Premier, is pleased to confirm that it has signed a binding joint venture agreement with Li3 Resources whereby Li3 Resources will acquire a 50 percent interest in Premier’s hard-rock lithium assets located in the Mutare Greenstone Belt (MGB) in Zimbabwe, in the eastern highlands of Zimbabwe.
Li3 Resources has until December 31, 2022 to acquire the 50 percent interest in the Premier’s Li3 Project by spending US$250 000 in further exploration works.
Premier said, “Li3 Resources has agreed to invest US$250 000 into the Li3 Project for the ongoing exploration works, environmental and technical studies and any administrative expenses.
“Li3 Resources will have until the December 31, 2022 to invest the ‘spend’ in order to exercise the option to acquire the 50 percent interest in the Li3 Project.”
Premier originally acquired the Li3 Project from Lithium Consolidated Ltd in July 2020.
The 1 500 hectares of licences are retained within the Mutare Greenstone Belt, located close to the eastern border with Mozambique.
The area was deemed prospective for Lithium-cesium-tantalum (LCT) type pegmatites (molten or igenius rocks) based on target generation work completed by Douglas Haynes.
“A number of LCT pegmatites are located within the MGB including the Grand Duke, Portree and Bepe deposits.
“The pegmatites have been historically mined for beryl and tantalite, and several companies in the region are currently conducting exploration for both tantalite and lithium,” Premier said in a statement.
Premier chief executive officer George Roach commented, “The Li3 Project is located in a region in Zimbabwe that is receiving significant interest in both lithium and potential gold deposits.
“The claim blocks are well located and, in several instances, have already attracted interest from international lithium producers.
“Of particular importance is that Li3 Resources plans to list on the Toronto Stock Exchange and this brings to Zimbabwe widened international interest and investment.”
“To Premier, this expands our lithium interests in Zimbabwe and whilst exploration and development at Zulu is independent of the activities of the Li3 Project, there is bound to be benefit and synergy. Li3 Resources has indicated that their contribution will be settled in one complete payment and this is expected imminently,” Mr Roach said.
Li3 Resources is a private, lithium focused exploration company founded and backed by senior mining executives who have had prior success in the lithium sector.
The Li3 Project is the first of a number of targeted lithium acquisitions by Li3 Resources.
“The plan is to acquire an attractive portfolio of highly prospective lithium exploration projects worldwide and then list the company’s shares on a recognised international stock exchange.
The Li3 Resources senior management have successfully executed similar transactions during their past 30 plus year history in the mining sector,” the joint venture statement said.
Online Reporter