Battery metals explorer Patriot Lithium has entered a binding option agreement to acquire an 80% stake in Zambia’s Katwaro Copper Project from Array Metals and Natural Resources. This strategic acquisition is part of the company’s efforts to diversify its asset portfolio and broaden its geographic presence.
The Katwaro Project, located near Mumbwa, covers 400 hectares and features a historical open-pit mine with copper-rich meta-sediments. Patriot Lithium will pay Array Metals $25,000 (A$37,172) for an exclusive 12-month option period. Should Patriot exercise the option, the project will be transferred to a special purpose vehicle (SPV) following a $250,000 payment to Array Metals. Patriot will then fund exploration and feasibility studies over the next 48 months.
The agreement also includes milestone payments. A JORC-indicated resource discovery of 5 million tonnes (mt) at 2% copper will trigger a $400,000 payment, with an additional $400,000 payable for another 5mt discovery at the same grade.
Patriot’s due diligence will focus on aligning the project with its lithium assets, particularly regarding sovereign risks and exploration timelines. In late 2024, the company plans to review historical data, conduct geological mapping, and carry out geochemical surveys at Katwaro.
This expansion into Zambia comes after a setback at Patriot’s Gorman Lithium Project in Canada, where land access was denied by a First Nation Band. While exploration at the company’s North American projects will be limited in late 2024 due to winter, Patriot remains committed to resuming operations in the spring.
Earlier in 2024, Patriot Lithium also expanded its portfolio by acquiring 61 mining claims in Ontario from Beyond Lithium.
