Mining magnate Klaus Eckhof pops up in middle of Javelin's bid for mystery, unlisted Ugandan lithium prospect

It’s not a mystery that Klaus Eckhof – perhaps best known for his role as chairman of AVZ Minerals (ASX:AVZ) ) – could very well be adding ‘Chairman of the Javelin Technical Committee’ to his extraordinary CV, should Javelin Minerals (ASX:JAV) be successful in its surprise acquisition of Eckhof’s Gecko Minerals.

Javelin (ASX: JAV) says it’s just signed a Takeover Bid Implementation Agreement (takeover play) for Gecko Minerals – Eckhof’s unlisted public company with a potentially lithium rich chunk of turf in Uganda.

Gecko owns a 60% interest in Gecko Minerals Uganda Limited (Gecko Uganda) which holds the Exploration Licence and three Exploration Licence Applications in Uganda, prospective for lithium.

As at the date of this announcement, Gecko has 94 shareholders. Under the Implementation Agreement, it is proposed that subject to completion of satisfactory due diligence, Javelin will make an off-market takeover bid pursuant to the Corporations Act for all of the shares in Gecko (Takeover Offer).

Under the proposed deal, Javelin says it’ll offer to Gecko’s 94 shareholders, 185 Javelin shares for every Gecko share held.

In the event that all Gecko shareholders accept (or Javelin reaches the 90% compulsory acquisition threshold) Javelin will issue a total of approximately 5,000,000,000 shares.

Klaus in the house

Klaus Eckhof is Gecko Uganda’s big shareholder and has been proposed as chairman of the Javelin Technical Committee in the event the takeover bid is successful.

Eckhof, a well-known mining magnate over yonder in WA, is a geologist with more than 30 years of experience, whose Midas touch has seen him grace altogether too many mining boards over the past two decades to mention.

Eckhof said:

“I am delighted at the prospect of working with the team at Javelin, and along with my colleagues Mark and Dylan, look forward to the design and execution of in country exploration activities following the successful completion of the transaction.

“I view both project areas as having the potential to host world class strategic mineral deposits in a largely under explored regional setting.”

With a sturdy track record of mine development worldwide, Eckhof’s been identifying, exploring and developing mineral deposits here at home, in Africa, Russia, South America and the Philippines.

Javelin says it’s also entered into Pre-Bid Acceptance Agreements with Gecko shareholders holding approximately 17.9% of the total shares in Gecko who have agreed to accept the proposal, in the absence of a superior offer.

Here’s the conditions:

1, Javelin being satisfied with its due diligence investigations into Gecko and its assets, liabilities, financial position and financial performance.

2. Gecko Uganda being granted the three Exploration Licences currently under application.

3. Javelin shareholders approving various resolutions at a General Meeting to be convened by Javelin.

4. A 90% minimum acceptance condition.

5. A regulatory approval and a no regulatory action condition.

6. A no material adverse change condition.

7. A condition restricting capital expenditure by Gecko other than as approved by Javelin.

Javelin also told the bourse of its pleasure, “to have been given the opportunity to acquire Gecko as its exploration assets have the potential to complement the Company’s existing portfolio of exploration projects in Australia across a range of commodities.”

Here’s Gecko’s highlights:

Gecko Uganda has two projects: Ntungamo, consisting of one Exploration Licence and two Exploration License Applications covering a total of 60sqkm, and Mityana, consisting of one Exploration licence application covering 240sqkm.

The Mityana Project surrounds a historical open cut tantalite mine (excised and not part of the acquisition) that is unexplored for its lithium prospectivity, and recent samples of deeply weathered pegmatite tailings and large amblygonite boulders in waste piles have returned assays of up to 8.13% lithium oxide.

The Ntungamo Project surrounds a historical open cut beryllium and tantalite mine (excised) that also remains unexplored for lithium prospectivity, and recent samples taken from large amblygonite boulders in waste piles have returned assays of up to 7.68% lithium oxide.

Gecko director and geologist Mark Gasson proposed to be appointed to the technical committee to oversee in-country exploration activities with experienced South African geologist Dylan Le Roux in the event the takeover bid is successful.

Javelin’s executive director Mr Matthew Blake said Gecko presented a major opportunity for Javelin as a lithium explorer and potential future lithium producer.

“The lithium potential of Uganda has been historically eclipsed by the abundant tin and coltan mining whilst these same granitic and pegmatitic host rocks may well contain large economic quantities of lithium minerals such as spodumene, lepidolite and amblygonite.”