PERTH (miningweekly.com) – Junior explorer Latitude Consolidated has moved to acquire a 70% interest in the Mbeta lithium project, in Zimbabwe.
Under the terms of the agreement, Latitude will pay the owner of the project $50 000 in cash on the signing of an agreement, as a non-refundable deposit. A further $50 000 will be payable on the registration of the transfer of the Mbeta claims into a joint venture (JV) vehicle.
Latitude would also issue the project owner, or its nominees, some six-million fully paid ordinary shares, within seven days of shareholder approval, while also financing all exploration by the JV up to the completion of a definitive feasibility study.
As part of the transaction, Latitude will raise A$3.45-million through the placement of 138-million shares, priced at 2.5c each. The placement will be undertaken in two tranches, with the first tranche to be conducted under the company’s existing placement capacity, and raising A$491 000.
The second tranche placement, which will raise A$2.95-million, will be subject to shareholder approval.
The Mbeta project comprises 13 mineral claims with a combined area of 18 km2.
Following the completion of the acquisition, Latitude will undertake data compilation and initial field exploration programmes aimed at gaining a better geological understanding of target areas identified within the Mbeta project area.
Exploration was likely to start with a rock-chip and soil sampling geochemical campaign in the historical mine and along the host structural corridor, Latitude said on Thursday, with analysis for lithium and associated elements.