Walkabout Resources (ASX:WKT) has executed a binding memorandum of understanding (MOU) to earn-in to a lithium prospective licence in the Warmbad area of southern Namibia.
The addition of the new license to Walkabout’s Eureka Lithium Project area further expands the company’s footprint in the highly prospective Orange River Pegmatite Belt in southern Namibia.
The company’s shares closed circa 26% higher on Thursday, at $0.125.
Trevor Benson, executive chairman, said; “The inclusion of EPL5691 into the Eureka Lithium Project and more importantly the addition of vast amounts of previously unmapped and un-sampled pegmatites strengthens the company’s position and our intention is to assemble a dominant holding for lithium prospectivity within Namibia.”
Exploration footprint rises to 2,000+ square kilometres
The addition of the license to the Eureka Lithium Project gives the company a commanding landholding position of over 2,000 square kilometres.
The Orange River Pegmatite Belt in southern Namibia is potentially one of the country’s most prospective regions for lithium bearing pegmatites.
Combined strike length in excess of 90 kilometres
The license hosts more than 120 newly mapped pegmatites that are mainly clustered in two areas of the tenement with a strike length in excess of 65 line kilometres (1,500 hectares).
Importantly, historical lithium occurrences of unknown grade have been documented on the license.
The addition of the new pegmatites brings the total number of pegmatites targeted for exploration within the Eureka Project to almost 200 with a combined strike length in excess of 90 kilometres.
Staged earn-in through sole funded exploration
Walkabout’s wholly owned Namibian entity has signed an MOU with a local Namibian company for a staged earn-in to the license by sole funding the exploration.
The initial earn-in of 51% can be converted to 75% with the establishment of a maiden JORC resource.
The company is raising up to $10.1 million for its projects in Africa and Northern Ireland via a capital raising comprising a share placement and a rights issue.
Walkabout has already secured $3.4 million from institutional and sophisticated investors through a share placement at $0.101 each.
The company’s rights issue aimed at raising up to $6.7 million at $0.10 per share is currently open.