Leo Lithium Limited announced its subsidiary, and Ganfeng Lithium Group (Goulamina JVCo) had signed a binding agreement with Bambara Ressources SARL and Kodal Minerals plc to acquire two mineral concessions in Mali for £2.5 million.
The Goulamina JV will acquire 100 per cent ownership of the concessions for the consideration of $4.64 million and a 2 per cent gross royalty.
The concessions are located south and east of the Goulamina Project and will increase the project’s land area from 101 km2 to 287 km2.
In the event of an economic mineral discovery within the area of concessions and that a bankable feasibility study supports discovery on granting a mineral exploration licence over that area, Bambara and Kodal have the right to be issued an equity-carried interest level of 15 per cent for no initial consideration.
The JV has an obligation to expend a minimum of $250,000 over two years on mineral exploration activities on the concessions.
Limited exploration has been conducted on the concessions to date, with the company saying it observed pegmatite boulders on the surface.
The process for the first concession will commence immediately and is expected to take several weeks to be completed.
The final binding agreement for the second concession will be executed when the renewal documentation for the concession is received.
The transfer is expected to commence when the renewal is received.
Commenting on the acquisition, Leo Lithium Managing Director Simon Hay said the project has a 23-year mine life but will be extended further due to the significant increase in the Danaya resource announced in January.
“This increased land holding will enable the Goulamina JV to optimise the location of infrastructure and mining stockpiles over the long term and this will be especially useful for our Stage 2 expansion,” he added.
