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Orosur Mining Inc Announces Lithium JV, Nigeria
- Company signs Exploration JV to cover four licences across the Nigerian Lithium belt.
- Exploration programs to start immediately.
- Full exploration team and infrastructure in place.
LONDON, UK / ACCESSWIRE / October 16, 2023 / Orosur Mining Inc. ("Orosur" or the "Company") (TSXV:OMI)(AIM:OMI), the minerals explorer and developer operating in Colombia, Argentina and Brazil, is pleased to announce that as a continuation of the Company's strategy of securing high quality mineral exploration opportunities in key jurisdictions, the Company has signed a joint venture ("JV") agreement to explore a number of exploration licences across Nigeria (the "Project") which the Company considers to be highly prospective for Lithium mineralisation.
The Company has long been examining an entry into the Lithium space to add to its diversified portfolio of high-quality exploration assets but had found few attractive South American opportunities.
Nigeria however is rapidly emerging as one of the most prospective regions of Africa for the discovery of lithium pegmatite mineralisation and as such is now seeing a very high level of interest and activity. The Company's executive team has substantial operating experience and high-level relationships in Nigeria, and the Company has been leveraging these factors over the last 12 months to gain substantial land positions in Nigeria's prime lithium pegmatite districts.
A team of experienced geologists is in place, with all necessary equipment and logistical support such that field programs will be commencing immediately. Work will start initially with preliminary reconnaissance, and it is expected that results and additional work can advance quickly.
The Company has signed a JV with Nigerian company Jurassic Mines Ltd ("Jurassic"), whereby Orosur, via a new 100% owned UK subsidiary, Lithium West Limited ("Lithium West"), may earn up to 70% equity in the Project in two phases:
1. Phase 1 - Lithium West can earn 51% equity in the Project by spending a total of US$3m over a maximum of three years.
2. Phase 2 - Lithium West can earn an additional 19% equity in the project, up to a total of 70%, by spending an additional US$2m over a maximum of two years.
The Project at inception will comprise four exploration licences across Nigeria's primary pegmatite belt, covering a total of circa 322km2. Other prospective areas are currently being examined and it is possible that additional licences may be added to the Project in the near term.
All licences have been specifically chosen due to their location within the major lithostructural corridors that are known to control lithium pegmatite mineralisation in this region.
Nigeria has long been known to have substantial potential for pegmatite mineralisation, however historically these pegmatites were largely exploited at the artisanal level for other metals such as Niobium and Tantalum. As such, little geoscientific information was publicly available related to any lithium potential.
However, in early 2018, the Nigerian Ministry of Mines and Steel Development began to undertake major geoscience mapping projects across the bulk of Nigeria's crystalline basement rocks to better define the mineral potential as the key plank in a far-sighted strategy to reduce the country's dependence on oil. These projects covered a range of commodities and were referred to as the National Integrated Mineral Exploration Project (NIMEP). This work indicated that the country indeed had substantial lithium pegmatite potential, especially in the southern regions.Fig 1 Schematic, Nigerian Geology
As a result, Nigeria has, in the last 12 months, seen a sharp increase in small scale artisanal lithium mining of obvious outcropping pegmatites, with a corresponding and similarly sharp increase in modern exploration across the region by international public and private companies.
Orosur began to examine opportunities in Nigeria in mid-2022, focusing on regional geological assessment and land selection, leading to this current JV with Jurassic.
Rationale and Experience
The Company has been examining options to enter the lithium space for some years, based initially on Andean brines and Brazilian pegmatites. However, it became apparent that these regions had become extremely competitive, with correspondingly high entry costs, which the Company felt were not commensurate with the quality of projects on offer.
Nigeria was then examined because of the extensive in-country experience of the Company's executive team and because the Country's lithium pegmatite potential is, to a large extent, a geological mirror image of the pegmatite fields in northeastern Brazil. The Company commenced the process of examining entry strategies, based upon a detailed assessment of geological potential, rather than simply on what was being offered.
Orosur worked closely with its new Nigerian partner, Jurassic, to carry out regional targeting exercises that ultimately led to these first four licences being pegged as vacant ground, specifically for this JV, rather than vending into pre-existing licences.
In addition, the Company has, via its long-standing relationships and experience, aligned itself with a highly experienced local exploration consultancy which will provide the Company with access to exploration teams with associated field logistics, drill rigs, assay equipment and extensive geological knowledge, thus allowing the Company to operate in the region without any major upfront investment or addition of substantial overhead.
Orosur CEO Brad George commented:
"Orosur has been examining entry into the lithium space for several years, but as with our other projects, we have pursued an early stage, low entry cost strategy, based upon detailed geological understanding of the local mineralising systems. Nigeria is clearly on a different continent, but with the extensive Nigerian experience of myself and our Chairman Louis Castro, together with our partner's excellent local team, we are entirely confident in our ability to develop this exciting opportunity in Nigeria in harmony with our equally exciting South American assets which we will continue to progress as planned."
For further information, visit www.orosur.ca, follow on twitter @orosurm or contact:
Orosur Mining Inc.
Louis Castro, Chairman,
Brad George, CEO
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & Joint Broker
Jeff Keating / Kasia Brzozowska
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker/James Pope
Tel: +44 (0)20 3657 0050
Flagstaff Communications and Investor Communications
Tel: +44 (0)207 129 1474
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a minerals explorer and developer focused on identifying and advancing projects in Colombia, Argentina, Nigeria and Brazil.
Qualified Persons Statement
The information in this news release was compiled, reviewed and verified by Mr. Brad George, BSc Hons (Geology and Geophysics), MBA, Member of the Australian Institute of Geoscientists (MAIG), CEO of Orosur Mining Inc. and a qualified person as defined by National Instrument 43-101.
Forward Looking Statements
All statements, other than statements of historical fact, contained in this news release constitute "forward looking statements" within the meaning of applicable securities laws, including but not limited to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release.
Forward-looking statements include, without limitation, the exploration plans in Colombia and the funding from Monte Águila of those plans, Monte Águila´s decision to continue with the Exploration Agreement, the formation of a new mining company or mining venture to hold the project, the ability for Loryser to implement the Creditor´s Agreement successfully in Uruguay and other events or conditions that may occur in the future. The Company's continuance as a going concern is dependent upon its ability to obtain adequate financing, to reach profitable levels of operations and to reach a satisfactory implementation of the Creditor´s Agreement in Uruguay. These material uncertainties may cast significant doubt upon the Company's ability to realize its assets and discharge its liabilities in the normal course of business and accordingly the appropriateness of the use of accounting principles applicable to a going concern. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such forward-looking statements. Such statements are subject to significant risks and uncertainties including, but not limited, those as described in Section "Risks Factors" of the MDA and the Annual Information Form. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
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SOURCE: Orosur Mining IncView source version on accesswire.com: https://www.accesswire.com/793252/orosur-mining-inc-announces-lithium-jv-nigeria