PERTH (miningweekly.com) – The share price of junior Force Commodities surged by nearly 5% on Monday as the company announced the consolidation of the Kitotolo lithium project, in the Democratic Republic of Congo.
Force has signed a binding heads of agreement with Walni Mineral Company to acquire a 75% interest in the Kitotolo West lithium project, which is immediately adjacent to the company’s own Kitotolo lithium project.
Under the agreement, Force will fund a minimum of $1-million of exploration expenditure over the next 12 months, and further annual exploration expenditure of $1-million for the subsequent two years.
The company will also be required to pay the vendor $150 000 on the execution of a binding heads of agreement and a further $100 000 on the completion of a technical and legal due diligence, and the election to proceed with the Kitotolo West joint venture (JV).
Force will issue a further A$400 000 worth of ordinary shares on the execution of all relevant JV documentation, and a further A$600 000 in shares on the completion of an initial exploration programme confirming the presence of lithium.
In addition, Force could increase its interest in the Kitotolo West project from 65% to 75% by issuing the vendor a further $500 000 of ordinary shares in Force at any time prior to a decision to mine.
Force head of exploration James Sullivan said on Monday that the potential acquisition of another 400 km2 of highly prospective lithium exploration licence will further strengthen the company’s position in the Kitotolo Manono lithium region.
“This is an important addition to our ground-holding and, importantly, will allow us to adopt a more holistic view of the exploration potential of the area and formulate an exploration approach which is geared to unlocking the potential of the entire Kitotolo trend and potential parallel structures.”
The Kitotolo West lithium project comprises a granted exploration licence which is in the process of being converted into a mining licence.
Force shares were trading at a high of 9.3c each, up from a low of 7.9c each.