Moab Minerals is branching out into Africa in a farm-in agreement with private UK company CAA Mining that is exploring six lithium-rich licences in Ghana.
Moab Minerals (ASX:MOM) has invested in lithium-focused CAA Mining for £750,000 (~$1,492,500) acquiring an initial 14.64% interest in the company.
CAA Mining is an unlisted UK-incorporated explorer focused on lithium and gold in Ghana, and is party to an earn-in agreement to acquire up to 85% of Lithium Resources Ghana by spending US$8 million to acquire any or all of Lithium Ghana’s six lithium prospecting licenses.
The licenses, covering more than 730km2, are along strike from Australian explorer Atlantic Lithium’s (ASX:A11) Ewoyaa lithium discovery which has a mineral resource estimate of 35.3mt @ 1.25% Li2O, with a definitive feasibility study on its way.
CAA Mining is seeking to raise at least US$4m to conduct initial exploration work and seek a listing on a recognised securities exchange.
“Following significant due diligence, we are very pleased to announce the investment in such high-potential lithium projects in Ghana,” Moab MD Malcom Day commented.
“The board believes the investment is an excellent strategic fit for Moab and will add short and long-term value to Moab shareholders.”
Elsewhere, Moab is planning a 21-hole drill program to test for extensions to uranium-vanadium mineralisation at its REX project in Colorado, of which it owns 60%.
This article was developed in collaboration with Moab Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.