Six Sigma Metals Ltd., formerly Botswana Metals Ltd., said May 17 that it executed an option to acquire the Chuatsa vanadium-titanium project and Shamva lithium project, both in Zimbabwe, by acquiring up to an 80% interest in Mirrorplex Pty Ltd.
The company will pay a deposit of A$100,000 to undertake a 60-day due diligence period and secure the option.
To earn an initial 30% stake, Six Sigma will issue 50 million shares and 10 million options, exercisable for 3 cents each for a period of three years. Subsequently, the company can pay A$1.3 million in shares to earn an additional 30% interest, for a total of 60% in Mirrorplex.
In order to complete the 80% earn-in, Six Sigma will need to shares equivalent to 20% of the projects' market value, subject to a minimum JORC-compliant indicated resource of 10 million tonnes of an economically mineable grade of lithium oxide.
Upon meeting the 80% earn-in, the company and the projects' vendors will seek to form a joint venture on the further expenditures over the projects.
The deal is subject to requisite approvals, including shareholder and government approvals, and satisfactory due diligence.
