Kazakhstan Potash Corp. Ltd. said March 26 that it is expanding its exploration portfolio to include lithium-tantalum-tin prospects, in addition to its existing potash exploration licenses, on the back of growing global demand for lithium, particularly in China.
The company agreed to acquire a 60% interest in Société MCC Resource SARL, which holds prospecting license PE 14068 covering an area of 88 square kilometers in the Democratic Republic of the Congo. The project area is considered highly prospective for greenfields lithium-tantalum-tin exploration.
Under the deal terms, Kazakhstan Potash will pay US$1 million and issue 100,000,000 shares at an issue price of 6 cents apiece. The company will also be responsible for all exploration activities and expenses on the project.
Kazakhstan Potash will be entitled to appoint two directors to the Société MCC board. The company will also appoint the financial controller for the DRC-based company.
In addition, Kazakhstan Potash plans to enter into a joint venture with Simon Cong, the vendor of Société MCC, in order to pursue similar opportunities in lithium and cobalt. The company will hold a 51% stake in the proposed joint venture, with Cong owning the remaining 49%.