Canadian mineral exploration company Chimata Gold Corporation said it is seeking to raise at least US$2 million needed to seal a deal with a Mauritius-based firm, Zimbabwe Lithium Company, to mine lithium in Kamativi.
Zimbabwe Lithium Company recently entered into an agreement with the Zimbabwe Mining Development Corporation to develop lithium tailings deposit at the Kamativi Tin Mine in Matabeleland North Province.
This tailings stockpile has been surveyed to give an estimated 23 168 000 metric tonnes of historical tailings material on surface.
Under the deal, Chimata will subscribe to the share capital of Zimbabwe Lithium for an initial subscription of 19 percent of Zimbabwe Lithium’s share capital in exchange for the allocation by Chimata of an amount of shares representing 19 percent of its then issued and outstanding share capital to the lithium producer.
“We are encouraged and excited by the recent changes in Zimbabwe. We believe that these changes signal an important investment opportunity,” Richard Groome, Chimata chairperson said.
“Zimbabwe is very rich in mineral assets and remains, in my opinion, one of the most attractive destinations in Africa. We look forward to working with the Zimbabwe government, ZMDC and our operating partners at Zimbabwe Lithium in building a rapidly emerging capital efficient lithium supplier to the world,” he said.
In order to finance the contemplated transaction, Chimata will complete a non-brokered private placement of up to 2 million Canadian dollars by the issuance of units of Chimata at a price of $0,15 per unit, each unit being comprised of one common share in the share capital of Chimata and one half common share purchase warrants.
Each full warrant entitling its holder to purchase one common share in the share capital of Chimata at a price of $0,25 per common share for a period of 12 months.
John McTaggart, managing director of Zimbabwe Lithium said: “We are very pleased to have on board a partner in Chimata.
In particular, during this very important and dynamic transition period in Zimbabwe, we would like to thank the government of Zimbabwe, the minister of Mines and Mining Development Winston Chitando, our partners at ZMDC and all stakeholders that have worked with us to bring this project to its current stage”
Chimata, which is listed on the Toronto Stock Exchange, currently has two other gold projects in Canada and in British Columbia. DailyNews