The company has now completed its second deal in the cobalt space, positioning itself as a significant player in this space within a few years.
European Lithium recently signed a binding term sheet with its first off-take partner, Shandong RuiFu Lithium Co., Ltd, a leading Chinese lithium producer.
Cape Lambert completes successful due diligence
Legal and technical due diligence has now been completed on the acquisition of a 70% interest in the Kitwe Cobalt-Copper Tailings Project in Zambia.
This will be the company’s second significant acquisition after finalising the Joint Venture with Paragon Mining to develop the Kipushi Cobalt Tailings and Kasombo Cobalt Projects in the Democratic Republic of Congo (DRC).
Tony Sage, executive chairman, commented:
"We have moved very quickly to secure this strategic and significant cobalt and copper asset for the company in one of the world’s largest cobalt producing regions.
"The acquisition, follows the completion of our cobalt production Joint Venture in the DRC last month.
"These acquisitions will see the company be a significant player in the cobalt market in the years to come.
"Our management and consultants completed a thorough legal and technical due diligence review and we are obviously pleased that the outcome was positive and now allows us to finalise the Share Purchase Agreement with our lawyers.
"We are committed to establish ourselves firmly in the cobalt sector and to utilize our resource experience in Africa to advance this project."
Today's news of the completion of due diligence further strengthen the company’s strategic positon in the Central African Copperbelt.
The belt is one of the world’s largest producing regions of high grade cobalt and copper concentrates and LME grade copper metal.
The acquisition further enhances Cape Lambert’s position in the cobalt sector with record high cobalt demand and prices at eight year highs.