Australasian Metals secures $1.5M African lithium option
- Australasian Metals has secured an option to buy up to 75% of the Atex project and 51% of the Alliance Project in Côte d'Ivoire.
- The transaction includes a $100,000 option fee and $1.4 million purchase consideration funded via existing cash and a $1 million placement.
- The deal aims to secure a presence in Côte d'Ivoire's emerging lithium sector.
Australasian Metals (ASX:A8G) has signed a binding option agreement with Firering Strategic Minerals to acquire majority interests in two African lithium projects for a total deal value of $1.5 million.
The agreement allows the company to secure an exclusive three-month option to acquire up to 75% of the Atex project and 51% of the Alliance Project in Côte d'Ivoire.
"Historical drilling at the Atex Project has delivered exceptional drill results, and we see significant upside through systematic exploration and resource definition," said Australasian Metals Managing Director Qingtao Zeng.
The financial structure involves a $100,000 option fee alongside a $1.4 million purchase consideration, funded by existing cash reserves of approximately $2.3 million and a new $1 million placement.
Australasian Metals stated that during the option period, it intends to undertake technical, legal, and commercial due diligence alongside public consultation for a maiden drilling programme.
Following the announcement, the Australasian Metals share price was up at $0.14.
The transaction grants Australasian Metals operational control of the assets within the Baoulé-Mossi domain of the West African Craton.
Previous exploration by the vendor delivered drilling results, including 67.97m at 1.23% lithium oxide from 68.4m.
