ASX-listed MetalsGrove Mining Limited (MGA) has entered into an agreement to acquire six new contagious lithium-tin-tantalum claims in Zimbabwe.

The assets are close to Prospect Lithium Zimbabwe (PLZ), one of the world’s largest lithium mines, producing 450,000 tonnes of concentrates yearly.   

The Perth-based exploration and development company said in a release on December 11 that recent rock chip samples at one of the projects, Arcturas returned grades up to 2.5% with the other permit, Beatrice returning 2.1%.

Five claims constituting the Arcturas project, lie in the Goromonzi lithium belt 35km east of Harare, the capital. The sixth is located in the Beatrice lithium belt 55km south of the city.

The lithium minerals consist of spodumene and lepidolite-bearing pegmatites and are populated by several artisanal workings and pegmatite surface outcrops, MGA said in the statement.

La Rich Resources Pty Ltd, a locally owned company holds the Arcturas claims with CN Mining Syndicate, also a local firm, owning the Beatrice Lithium Project.

The total cash consideration for the assets is $60,000 payable to the local entities upon transfer of the property to MGG. Each of them will retain a 5% free carried interest in the respective projects until a decision to mine is reached.

MGA’s technical team is finalising plans for an initial exploration campaign to start by March 2024.

Managing director Sean Sivasamy said the acquisition of the “advanced” assets which provide the company with “prime exposure” to a proven lithium-producing district in Zimbabwe is a potentially “transformational” opportunity.

“Importantly, the upfront acquisition terms are modest, allowing the company to set about rapidly advancing these projects through a targeted exploration campaign early next year. Further highlighting the near-term development potential of these projects, we will be located nearby to accessible high-quality infrastructure and a large-scale lithium processing facility,” he said.

Prospect used to be owned by ASX-listed Prospect Resources before it sold it in 2022 for $422mn to Zhejiang Huayou Cobalt which in turn invested $300mn to develop the mine.

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