Battery metals explorer Patriot Lithium has secured a binding option agreement to acquire an 80% stake in the Katwaro Copper Project in Zambia from Array Metals and Natural Resources.
The move aims to diversify the company's asset portfolio and provide jurisdictional diversity.
The Katwaro Project near Mumbwa encompasses 400ha and features a historical open-pit mine with copper-bearing meta-sediments.
For an exclusive 12-month option period, Patriot Lithium will pay Array Metals $25,000 (A$37,172).
Should Patriot Lithium exercise the option, a special purpose vehicle (SPV) will be formed and the project will be transferred into the SPV following a payment of $250,000 to Array Metals.
For a period of 48 months from the option exercise or transfer of the project to the SPV, Patriot Lithium will be responsible for funding exploration and feasibility studies.
The agreement stipulates that if the SPV delineates a JORC-indicated resource of five million tonnes (mt) at 2% copper, Patriot Lithium will pay Array Metals an additional $400,000.
A further 5mt at the same grade will result in another $400,000 payment.
Patriot Lithium's due diligence during the option period is focused on ensuring the project complements its lithium assets with regard to "native title/sovereign risk, and alternative weather windows for exploration".
In the fourth quarter of 2024 (Q4 2024), Patriot Lithium plans to review historical and current exploration data, conduct geological surface mapping and undertake geochemical surveys at Katwaro.
This development follows the company's setback at its Gorman Lithium Project in Canada, where a First Nation Band denied land access for a drilling programme.
Patriot Lithium is expanding into other jurisdictions, starting with the Katwaro acquisition.
The company highlights the importance of copper in the battery metals sector and recognises Zambia as a significant player in the global copper market with a supportive mining environment.
Due to winter conditions in the Northern Hemisphere, exploration activities at Patriot Lithium's North American projects will be limited during Q4 2024.
However, the company is committed to continuing negotiations for land access and planning for the resumption of activities in the spring.
In January this year, Patriot Lithium acquired 61 mining claims in Ontario from Beyond Lithium.
