DRC: African Energy Metals lands major interests following an agreement reached with WCM in a mining project in Manono
The mining junior African Energy Metals, a company based in Vancouver and listed on the TSXV in Canada, announced that it had reached an agreement with Whiskey Cobalt Mining (WCM) which sells to it, subject to positive due diligence and obtaining regulatory approvals, its interests in a mining concession located in Manono, province of Tanganyka in the DRC.
According to inside sources, the transaction in question gives African Energy Metals the possibility of creating a 50-50 joint venture with the local company Liberty Mining and Investments Sarl. In return, it will directly issue 2.5 million ordinary shares in favor of WCM and then place another 2.5 million shares in escrow, pending “positive results concerning lithium” that the concession could host.
There is also provision for payment for expenses incurred by WCM on the project.
According to available data, but which have not been confirmed by an independent report, only a resource of approximately 25,000 tonnes of ore grading 5% tin has been identified to date. Only, the concession is located in a region known to be rich in tin, but also in lithium, since the discovery of a large deposit by the Australian AVZ, 30 km to the west.
Other analysts believe that as the race for lithium projects heats up, fueled by soaring demand from the electric vehicle industry, African Energy Metals is unlikely to miss out. able to fund exploration work to identify the next lithium deposit in the same region.
