Canadian Mining Company AJN Resources Acquires 70% Stake in Lithium Project in DRC

AJN Resources, a mining company based in Vancouver (Canada), announced on June 2, 2023, the conclusion of an agreement with the Congolese company Palm Constellation, based in Kinshasa in the Democratic Republic of Congo (DRC). 

The latter will have to sell him up to 70% interest in an exploration permit it holds in the Manono region, known to potentially host significant lithium resources.

Under the terms of the agreement, two payments totaling US$150,000 will initially be made to the seller by AJN. The latter will have up to six months to carry out due diligence.

At the end of due diligence, which may include sampling work and a reduced drilling program, AJN must confirm its intention to proceed with the acquisition of the permit by paying an additional $250,000, in order to obtain an indirect participation from 51% in the project.

“We are very excited about this latest acquisition which potentially covers 10 km2 of very promising land with good potential for the presence of subsurface lithium-bearing pegmatites,” commented Klaus Eckhof, CEO of AJN Resources.

Note that the company will also have to issue in favor of Palm Constellation, a number of shares worth 10.5% of the total issued and outstanding shares of AJN. 

By issuing an additional four (4) million shares to Palm, followed by a further payment of $250,000, AJN will obtain an additional 9% interest in the license. 

Finally, it will complete the acquisition of the 70% interest with a final payment of five (5) million dollars. Exploration work until the conclusion of a possible definitive feasibility study will be financed by AJN.

The Manono region is home to a project of the same name, led by the Australian AVZ Minerals. The Manono lithium project is considered the most advanced in the DRC and only the mining license is currently missing to launch the development of what could be the first lithium mine in the country.