Asset-hungry Askari locks down sixth lithium project for 2022

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Askari Metals has expanded its lithium presence in the Pilbara region of WA by entering into a binding agreement to acquire all shares of privately held Greenstone Lithium, in exchange for an upfront consideration of $250,000 in cash and stock. The 65 square kilometer project is considered prospective for lithium, tin and tantalum mineralization and includes a granted tenement and a tenement application.

The terms of the agreement also include three milestone payments and a 1% net smelter royalty on all minerals produced from the ground. Following the grant of the second building, Askari will deliver an additional $100,000 in cash and $300,000 in stock. In his final trade, the seller will reap an additional $1.5 million in stock, provided Askari succeeds with the drill and banks on a significant resource.

Hillside is located in the “Tambourah Lithium District” along strike and adjacent to ASX-listed Eastern Resources’ Trigg Hill and East Curlew prospects, which are currently being explored for lithium. The nearby exploration company has identified and drilled extensive pegmatites in its ground that can be traced along strike to extend to Hillside, according to Askari. So far, Eastern Resources has collected rock chip samples of up to 2.28% lithium oxide and is eagerly awaiting assays from its 32-hole drill program which has intercepted pegmatites in 30 holes. .

Similarly, 4km southeast of Hillside are Riversgold’s ASX-listed Tambourah project and Trek Metals’ ASX-listed Tambourah North project. Just this week, Trek Metals announced that it encountered spodumene in rock samples with assays as high as 3.07% lithium oxide.

The Hillside Lithium project complements the company’s aggressive acquisition strategy in the eastern Pilbara region of Western Australia… This region is the subject of much dedicated lithium exploration and is a hive of activity. We are delighted to now be able to be part of it as well.

As part of Askari’s due diligence assessment of the project, the company put its boots on the ground and mapped pegmatite exposures in the project area. As part of follow-up work, it plans to continue its mapping efforts near the Eastern Resources project areas in addition to rock chip sampling of outcropping pegmatites to build a surface mineralization model.

The company’s latest acquisition follows a strategic partnership formed in late October with Zhejiang Kanglongda Special Protection Technology, a Shanghai-listed lithium heavyweight. The new partner has a market capitalization of nearly US$1 billion and also owns a 51% majority stake in Jiangxi Tiancheng Lithium Industry, which specializes in mining lithium sulfate solution. Zhejiang Kanglongda will assist the company with downstream lithium chemical processing techniques and opportunities, in addition to providing access to capital for future development.

Under the alliance, if Askari reaches the mining stage, its Chinese partner will enjoy a privileged mining position at market prices. Askari’s latest land grab and lithium partnership deal is a continuation of its battery metals strategy which has seen the company acquire five more lithium projects in 2022 alone.

Is your ASX-listed company doing anything interesting? Contact: matt.birney@wanews.com.au

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