Canadian mineral exploration firm Energizer Resources has completed a transaction to consolidate its ownership in the Molo graphite project in Madagascar.
Energizer acquired the remaining 25% interest in the Molo project from its joint venture (JV) partner Malagasy Minerals.
The company will also own 100% of the industrial mineral rights within the acquired property, which comprises 2,120 claims totalling 363 square miles.
The Molo deposit area is just 0.3 square miles, representing less than 1% of the total land package.
The agreement requires Energizer to make cash and share payments over various stages and complete the full feasibility study, as well as the start of commercial production at Molo.
Energizer Resources chief executive officer Richard Schler said the acquisition of the remainder of the Molo graphite project represents another key milestone and is an important step in the company’s overall mine development plan.
"We know through on-going dialogue with potential strategic partners regarding off-take agreements and project financing for the future Molo mine that 100% ownership is highly preferred and so this transaction should certainly help facilitate those discussions," Schler said.
In a related transaction, Malagasy has also agreed to acquire a 75% interest for non-industrial minerals on four claims of Energizer’s Green Giant property in Madgascar.
Energizer will own the remaining 25% in the non-industrial minerals and have a free carried interest through to the feasibility stage.
The PSA is subject to approval from the Toronto Stock Exchange and the US Securities Exchange Commission.