Orosur Mining has entered into a joint venture (JV) arrangement to investigate several exploration licences in Nigeria that are deemed to have significant potential for lithium mineralisation, according to the company.
Long contemplating a foray into the lithium industry as a means to augment its varied portfolio of high-quality exploration properties, the organisation had encountered few prospects in South America that were particularly alluring.
Nigeria, nevertheless, is swiftly establishing itself as one of the most auspicious areas in Africa in terms of lithium pegmatite mineralisation discoveries; thus, there is currently an exceptionally high degree of activity and interest in the country.
Utilising the management team's extensive operational background and influential connections in Nigeria, Orosur has amassed significant land holdings in Nigeria's top lithium pegmatite districts during the past year.
It said that an experienced geologist team is in place, accompanied by the required equipment and logistical support, so that field programmes can begin immediately.
Orosur said that preliminary reconnaissance will be the initial step in the operation, and it is anticipated that results and further work will progress rapidly.
A joint venture (JV) has been established between the company and the Nigerian firm Jurassic Mines. Under the terms of this agreement, Orosur, through a newly established wholly-owned subsidiary in the United Kingdom called Lithium West, could acquire a maximum of 70% equity in the project over two distinct phases.
Lithium West will acquire a 51% ownership stake in the undertaking during the initial phase by allocating a cumulative expenditure of $3 million over a maximum duration of three years.
Lithium West will receive an extra 19% equity in the project, for a total of 70%, during the second phase by investing an additional $2 million over two years.
Initially, the project will encompass four exploration licences spanning approximately 322 km2 of Nigeria's major pegmatite region.
Further investigation is ongoing in other potential domains, and it is conceivable that supplementary permits could be appended to the undertaking shortly.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
