eBusiness Weekly
Tawanda Musarurwa
HARARE – Toronto Stock Exchange-listed Chimata Gold Corporation Chimata Gold Corporation says a provisional technical report on the Kamativi Lithium Tailings has shown significant lithium deposit volumes.
It however remains cautious on the project.
“The Provisional Report reveals an exploration target with a volume range of 14,800,000 to 15,080,000 cubic meters and a tonnage range of between 23,000,000 to 25,000,000 metric tonnes of tailings material, the Kamativi Tailings Dump (“KTD”) at a grade range of 0, 29 percent to 1.13 percent Li2O with 70 percent being Spodumene.
“The potential tonnage and grade is conceptual in nature as there is insufficient exploration data to define a Mineral Resource, as this term is defined in NI 43-101 Respecting Standards of Disclosure for Mineral Projects (“NI 43-101”). The company cautions that further exploration may not result in the delineation of a Mineral Resource estimate,” said Chimata in a notice to the TSX.
Chimata Gold Corporation is looking to acquire Zimbabwe Lithium Company, which was recently granted exclusive development rights for the Kamativi lithium tailings deposit at the Kamativi Tin mine.
Earlier this year, the mining firm signed a “binding letter of intent” (LOI) with Mauritian-headquartered Zimbabwe Lithium Company Limited.
In terms of the LOI, Chimata will subscribe to the share capital of ZIM for an initial subscription of 19 percent of ZIM’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 ZIM, such amount being calculated post-closing of the concurrent financing…
It will gain further rights to acquire the remaining issued and outstanding share capital of ZIM upon the fulfilling of certain terms and conditions as set out in the LOI, the whole resulting in ZIM becoming its subsidiary.
With regards to the proposed transaction, Chimata said in order to finance the transaction, it will complete a non-brokered private placement of up to two million canadian dollars (CAD$2 000 000) 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.
It has an exclusive right to complete the transaction with Zimbabwe Lithium.
Zimbabwe Lithium recently signed a joint-venture agreement with the Zimbabwe Mining Development Corporation (ZMDC) with respect to the grant of exclusive development rights for the Kamativi lithium tailings deposit at the Kamativi Mine, which is located in the Matabeleland North Province.
Chimata’s provisional report also revealed that a total of 28 grab samples have been extracted from the KTD, at a grade of between 0, 29 percent to 1, 13 percent Li2O.
Added Chimata:
“Early stage Mineralogy and Heavy Liquid Separation has been completed on the grab samples by ZIM, through SGS Randfontein South Africa, and indicates that 70 percent of the lithium mineralisation, of the sample tested, is spodumene.”
