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.
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.
Arcadia 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.