PERTH (miningweekly.com) – ASX-listed Hipo Resources has signed a joint venture (JV) agreement to earn a 60% interest in the Kamola lithium project, in the Democratic Republic of the Congo.
Under the terms of the agreement with Crown Mining, Hipo will sole-fund $5-million in exploration and project development expenditure within a three-year period to maintain its JV interest.
Exploration activities to the tune of $1-million will be undertaken within the first 12 months of the JV, and Hipo will advance funding on a loan account basis, with Crown finance carried through to a definitive feasibility study stage.
“This transition is a very significant development for Hipo and we are pleased to have agreed terms with Crown,” said executive chairperson Maurice Feilich, noting that exploration results from surrounding projects, which had similar geological characteristics to Kamola, gave the company every confidence in the asset.
“Follow-up work at Kamola, including detailed mapping, surface geology analysis, sampling and pitting, will commence early next week and we expect it will give us a greater understanding of the project’s potential and identify immediate drill targets for early 2019.”