Chimata Gold Corp. said Feb. 14 that it signed a binding letter of intent with privately-held company Zimbabwe Lithium Co. (Mauritius) Ltd. for an initial subscription of 19% of the latter's issued share capital, with an option to wholly acquire the company.

As payment, Zimbabwe Lithium will be allocated shares equivalent to 19% of Chimata, following the placement of units at 15 Canadian cents each to raise C$2 million.

Zimbabwe Lithium signed a joint venture agreement with the Zimbabwe Mining Development Corp. for the exclusive rights to develop the Kamativi lithium tailings deposit and the Kamativi tin mine.

The agreement contemplates the signing of a definitive agreement following the completion of various terms and conditions, including due diligence.