Arcadia Minerals has conditionally agreed to buy three licences in Namibia, through its 50%-owned unit Brines Mining and Exploration Namibia (BME).
The licences will be acquired from LexRox Management Services, a South Africa-based firm owned by Arcadia executive directors.
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Under the agreement, BME will pay $64,929 (A$87,000) to purchase a 25% interest in the three licences by May 2022.
The company would then have the right to pick a 100% stake in the licences by making an additional payment of $131,351 (A$176,000), within two years from the initial acquisition.
BME will also make a payment of $458,984 (A$615,000) following the completion of a definitive feasibility study for resources containing more than 500,000t of lithium carbonate equivalent (LCE) sourced from potential lithium-in-brines at the licences.
With the potential to contain a lithium-in-brine aquifer, the three licences are situated near the towns of Kalkrand and Hoachanas in the Hardap Region of central Namibia, and adjacent to Arcadia’s Bitterwasser lithium project.
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By GlobalDataArcadia said that the licences would complement its 3,438km² tenure at the Bitterwasser project.
According to the inferred JORC Mineral Resource estimates, the new licences hold 15.1 million tonnes at 828 parts per million (ppm) lithium and 1.79% potassium.
Arcadia said in a statement: “The mineral resource represents only 6% of the exposed clay pans within the three new EPL’s covering 593km² and provides the company with extensive geological knowledge to help in its understanding of the lithium potential on its existing 3,438km² of claypans and brines potential.”
The deal is also expected to increase BME’s land holding to around 4,031km².
