Namibian lithium developer and lithium concentrate producer Desert Lion Energy has entered definitive Transfer Agreements for the acquisition of Exclusive Prospecting License 5555 and 5718, both located adjacent to its existing Exclusive Prospecting Licenses 5439, where the historic Rubicon and Helikon lithium mines are located.
Exclusive Prospecting License (EPL) 5718 covers an area of 200 km2 and is located immediately adjacent to and south of Desert Lion Energy’s existing EPL 5439 and contains known lithium – cesium – tantalum (LCT) type pegmatite occurrences.
EPL 5555 covers an area of 553 km2 and is located adjacent and immediately west of EPL 5439, and also is believed to contain multiple LCT type pegmatite occurrences and workings.
In separate Transfer Agreements, Desert Lion Energy has agreed to pay aggregate consideration of approximately C$180 000 for each of EPL 5555 and EPL 5718, of which C$30 000 was paid in cash on execution of the respective Transfer Agreement.
An additional cash payment of approximately C$100 000 will be paid on closing of each transaction and Desert Lion Energy will issue the respective vendors in aggregate, a number of common shares of the company equal to C$50 000 and at a price per share equal to the closing price of Desert Lion’s common shares on the TSX Venture Exchange on the day immediately prior to closing.
Both EPLs are largely under explored with respect to lithium mineralisation and contain host Pan African age (500 Ma) syn and post tectonic granites that are considered to be the source of LCT type pegmatites.
Abundant late stage pegmatites intrude throughout the EPL area and these are thought to have been emplaced during the end of phases of granite intrusion.
The proposed acquisition of these two EPLs represents an opportunity for the company to increase its ground holding in this prospective part of the southern pegmatite field in Namibia’s Erongo region.
Upon closing of the Proposed Transaction, the company’s ground holding in Namibia will cover a total of 1 054 km2.
Closing of the Proposed Transaction is subject to receipt of approval of the transfer of the EPL’s to Desert Lion by the Namibian Ministry of Mines and Energy as well as any required regulatory approvals, including the TSX Venture Exchange.
“We are excited to have acquired EPL 5555 and 5718,” comments president and CEO of Desert Lion Energy Tim Johnston.
“These EPLs represent significant optionality for our organic growth profile, which we plan on testing as we move forward with our 2018 exploration programme,” he adds.