Australian company Desert Metals has agreed to acquire Côte d’Ivoire-based CDI Resources Limited (CDI).
Under the deal terms, Desert Metals will issue a total of 75,000,000 fully paid ordinary shares to the shareholders of CDI (CDI Vendors).
CDI, through its subsidiaries CDI Minerals and CDI Lithium, holds interests in seven gold and lithium projects in West Africa.
These projects, which cover an area of 2,769km², comprise granted mineral permits and permit applications.
The projects include the Tengrela South gold project; the Adzope gold project and Agboville lithium project in south-eastern Côte d’Ivoire; the Vavoua and Vavoua West gold projects in central-west Côte d’Ivoire; and the Kounahiri and Kounahiri West gold projects in central Côte d’Ivoire.
Desert Metal managing director Robert Stuart said: “CDI has an impressive portfolio of highly prospective gold and lithium projects in Côte d’Ivoire, including, in particular, the Tengrela South project in the multi-million-ounce Syama-Boundiali greenstone belt.
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“This project is well advanced, has outstanding historical results and is particularly exciting given its location within 30km of Sissingué gold mine and 10km of the Atex lithium discovery.
“The acquisition will also strengthen the DM1 board by appointing highly experienced ASX director and West African operator Stephen Ross as a director.”
Desert Metal expects the acquisition to add further value to its existing portfolio of rare earths, nickel and gold assets in WA’s Yilgarn Craton.
Furthermore, Desert Metals appointed CPS Capital as broker and corporate advisor to undertake a conditional share placement to raise up to A$2.5m ($1.64m) to fund exploration activities in the coming 12 months.
Stuart added: “Adding to the company’s rare earth discoveries at Innouendy and Dingo Pass and its nickel, copper and gold projects in Western Australia’s Yilgarn Craton, we look forward to unlocking the gold and lithium potential on this exciting portfolio over the next 12 months.”