MetalsGrove Purchases Two Lithium Mines For $60,000
MetalsGrove Mining (MGA) has entered into a strategic agreement to acquire six, contiguous and highly prospective lithium-tin-tantalum claims from two mines, in what the company considers a transformational opportunity.
The newly acquired claims are close to the ‘world-class’ Arcadia Minerals lithium-producing mine, which is one of the world’s largest lithium mines producing up to 450 000 tonnes per annum of lithium concentrate.
Notably, five claims are within the well-known Goromonzi lithium belt with the sixth claim located in the Beatrice lithium belt.
The completion of the acquisition of the projects is conditional on MGA obtaining all necessary shareholder and regulatory approvals required to complete the acquisitions as well as confirmation of the title and transfer of title to MGA.
MGA said it expects the completion to occur within the next two weeks.
The transaction consists of an upfront consideration payable for the two mines of US$60 000, comprising of a $US50 000 for the acquisition of the Arcturas Lithium Project and a $US10 000 for the acquisition of the Beatrice Lithium Project.
However, the miner can pay up to US$4 million depending on grade and quantity after exploration.
According to the company, these amounts are payable to the local entities at completion and these consideration payments will be made by utilising the MGA existing cash reserves.
Commenting on the acquisition of these new assets, MGA’s managing director, Sean Sivasamy, said: “MetalsGrove is very excited to be acquiring these advanced lithium assets which provide the company with prime exposure to the proven lithium producing district in Zimbabwe.”
Importantly, the upfront acquisition terms are modest, allowing the company to set about rapidly advancing these projects through a targeted exploration campaign early next year.”
He further said highlighting the near-term development potential of these projects, they will be located nearby to accessible high-quality infrastructure and a large-scale lithium processing facility.
“The board considers this a transformational opportunity for MGA supported by a strong lithium market, and we look forward to advancing these assets as quickly as possible over the coming months,” he said.