Lithium Africa Acquires Advanced Lithium Asset in South Africa
Executive Summary
- Lithium Africa Corp. entered a definitive agreement to acquire 70% of Namli Exploration & Mining Proprietary Limited, securing the Springbok lithium project in South Africa, which includes a past‑producing spodumene mine, a 30,000 t stockpile and a 1,675 km² land package with mapped LCT pegmatites.
- Transaction consideration totals US$3.95 M (US$1.35 M cash up‑front, US$150 k claim settlement, US$2.5 M payable over 24 months) plus a US$200 k consultant fee paid in common shares upon TSX‑V approval.
- The Springbok Project hosts an inferred resource of ~71,700 t at 1.27 % Li₂O (41,420 t @ 1.01 % Li₂O in‑situ pegmatite and 30,259 t @ 1.61 % Li₂O stockpile) and identified 30 new spodumene‑bearing pegmatites within a >20 km trend.
Key Details
- Acquisition Structure:
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70 % of Namli to be acquired in two stages – 30 % immediately upon South African Currency and Exchanges Act authorisation, remaining 40 % after receipt of “s11 Consent” from the State Department of Mineral and Petroleum Resources.
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Consideration:
- US$1.35 M cash (30 % upfront, 70 % post‑consent).
- US$150,000 to settle a third‑party claim related to the Springbok Project.
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US$2.5 M payable over 24 months in monthly installments of US$106,000.
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Consultant Fee:
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US$200,000 payable in Lithium Africa common shares upon TSX Venture Exchange approval of the acquisition.
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Project Assets Acquired:
- Past‑producing Norrabees spodumene pegmatite mine and historic stockpile (≈30,000 t).
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Prospecting right (NC13301PR) and mining permit (NC10950MP) covering a 1,675 km² land package with known LCT pegmatite field.
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Historical Inferred Resource (2024 NI‑43‑101 Report):
- In‑situ pegmatite: 41,420 t @ 1.01 % Li₂O (416 t Li₂O).
- Stockpile: 30,259 t @ 1.61 % Li₂O (487 t Li₂O).
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Combined total: 71,679 t @ 1.27 % Li₂O (903 t Li₂O).
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Drilling Highlights (2018‑2019 program, 10 holes, 321.77 m):
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Significant intercepts include 18.34 m at 1.92 % Li₂O and 32.66 m at 1.09 % Li₂O.
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Metallurgical Test Work (Sept 2020 DMS pilot):
- First‑stage concentrate: average 4.89 % Li₂O.
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Re‑processed ~50 kg fraction produced concentrates of 6.41 % and 6.76 % Li₂O.
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Exploration Outlook:
- Reconnaissance mapping (2025) identified 30 new spodumene‑bearing pegmatites within a >20 km trend.
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Planned regional structural study, systematic sampling, and re‑drilling of at least 20 % of historic holes to better define geometry and continuity.
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Management Commentary:
- CEO Tyron Breytenbach emphasized the acquisition provides an “advanced brownfields operation” and a near‑term cash‑flow source from the stockpile to fund non‑dilutive exploration capital.
Notable Quotes
“The acquisition of the Springbok Project provides Lithium Africa with an advanced brownfields operation to complement our exciting but earlier stage grassroots programs across Africa.” – Tyron Breytenbach, CEO & Director
All technical disclosures have been reviewed and approved by Benjamin Gelber, P.Geo, non‑independent Qualified Person (NI 43‑101).