AMN - ZIMBABWE: Chimata set to secure lithium rights

Chimata Gold Corp has entered into an agreement which will result in Zimbabwe Lithium Company (Mauritius) Limited (ZIM) becoming a subsidiary. ZIM is focused on developing lithium mining properties and assets in Zimbabwe.

A binding letter of intent has been signed by Chimata with the privately held company that is incorporated under the laws of Mauritius.

A ZIM subsidiary has exclusive development rights for the Kamativi lithium tailings deposit as a result of a joint venture agreement with the Zimbabwe Mining Development Corporation (ZMDC).

This tailings stockpile, which is at the disused Kamativi tin mine in Matabeleland North Province, Zimbabwe, has been surveyed to give an estimated 23,168,000 tonnes of historical tailings material on surface.

The project is about 185 kilometres southeast of Victoria Falls, about 84 kilometres by tar road east of Hwange and about 310 kilometres northwest of Bulawayo.

The agreement will see Chimata subscribe to the share capital of ZIM for an initial subscription of 19% of that company's share capital in exchange for the allocation by Chimata of an amount of shares representing 19% of its then issued and outstanding share capital.

Chimata also has the right to further acquire the remaining issued and outstanding share capital of ZIM upon the fulfilling of certain terms and conditions, the whole resulting in it becoming a subsidiary of Chimata.

Closing and final acceptance of the contemplated transaction is subject to various terms and conditions comprised of, but not limited to, the completion of a satisfactory due diligence of the assets by Chimata and the entering into a definitive agreement.

In order to finance the transaction, Chimata will complete a non-brokered private placement of up to Can$2 million.

Entering a definitive agreement is also subject to the production by ZIM of a technical report prepared in accordance with the provisions of NI 43-101 on the project.

Chimata's CEO and chairman Richard Groome said, “We are encouraged and excited by the recent changes in Zimbabwe. We believe that these changes signal an important investment opportunity.

"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 ZIM in building a rapidly emerging capital efficient lithium supplier to the world.”

http://chimatagoldcorp.com/