Canada-based Orosur Mining has formed a joint venture (JV) with Nigeria’s Jurassic Mines for lithium exploration opportunities in the African country.
Orosur entered the JV agreement through its new wholly owned UK subsidiary Lithium West.
The project initially includes work on a project that comprises four exploration licences located across Nigeria’s primary pegmatite belt, spanning around 322km².
Other prospective areas are also currently being studied and more licences could be covered under the project.
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Through the JV, Orosur plans to explore several exploration licences across the country, which are claimed to be highly prospective for lithium mineralisation.
Lithium West may earn up to a 70% stake in the project in two phases. In the first phase, it can earn up to 51% equity in the project by investing $3m (£2.46m) over a maximum of three years.
During the second phase, it can earn a further 19% stake by investing another $2m over a two-year period, which will make a total of a 70% interest.
For a long time, the company has been contemplating the addition of lithium to its portfolio of exploration assets and claims to have found some lucrative opportunities in South America.
In recent years, Nigeria has emerged as one of the highly prospective regions for lithium pegmatite mineralisation discovery.
Orosur Mining CEO Brad George said: “Orosur has been examining entry into the lithium space for several years, but as with our other projects, we have pursued an early-stage, low-entry cost strategy, based upon a detailed geological understanding of the local mineralising systems.
“Nigeria is clearly on a different continent, but with the extensive Nigerian experience of myself and our chairman Louis Castro, together with our partner’s excellent local team, we are entirely confident in our ability to develop this exciting opportunity in Nigeria in harmony with our equally exciting South American assets, which we will continue to progress as planned.”