African Energy Metals to acquire Whiskey Cobalt Mining’s stake in Manono project
TSX-V-listed African Energy Metals has acquired Whiskey Cobalt Mining’s (WCM’s) interest in the Manono tin, tantalum and lithium project, in the prolific Manono area in the Tanganyika province of south-east Democratic Republic of Congo.
The disposal by WCM of the project, comprising an exploitation permit covering about 30 km2, will involve WCM assigning African Energy Metals an exclusive option agreement with Liberty Mining and Investments to enter both parties into a 50:50 joint venture on the project.
The Manono concession is about 90 km northeast of Manono in Kiambi, and about 440 km aerial distance to the north of Lubumbashi.
The project has artisanal mine workings and an internal report based on exposed mineralisation in artisanal pits prepared for Liberty, which indicates a potential of up to 25 200 contained tonnes of tin at a grade of 5%.
The Manono district was heavily mined for tin going back to the early 1900s. Most recently, AVZ Minerals made a significant lithium-rich (lithium, caesium and tantalum) discovery 30 km due west of the African Energy Metals project.
The AVZ Roche Dure mineral resource is reported at 400-million tonnes, grading 1.65% lithium oxide.
The acquisition agreement is structured as a binding memorandum of understanding to be converted into a definitive agreement during the 60-day due diligence period.
As consideration for the acquisition, African Energy Metals will reimburse supported prior expenses, assume certain financial obligations and issue 2.5-million of its common shares to WCM.
A further 2.5-million common shares of African Energy Metals will be placed in escrow only to be released when positive lithium results are obtained from preliminary testing during the due diligence period.
In addition, a royalty of 5% on net revenue from any small-scale tin production will be paid to WCM and is also tied to similar escrow provisions and capped at $500 000.
