Force Commodities Ltd. said Aug. 7 that it signed a binding heads of agreement with Lithium Age Pty. Ltd. to acquire a 70% interest in the Kitotolo and Kiambi projects in the Democratic Republic of the Congo, which are considered prospective for lithium, tin and tantalum.
The Kitotolo project comprises an exploration license covering about 400 square kilometers, which is expected to be renewed for five years. The project will be jointly explored with state-owned La Congolaise d'Exploitation Miniere SA, or Cominiere.
Located 80 kilometers east of Kitotolo, the Kiambi project covers 34 square kilometers and will be jointly explored with private company Liberty Mining and Investments SARL.
Force Commodities paid US$50,000 in cash and will assume Lithium Age's responsibilities for both projects upon the completion of due diligence and will issue a total of 127.5 million shares upon completing certain project milestones.
Should Force Commodities proceed with the acquisition, it will pay Liberty Mining A$150,000 in cash upon the transfer of the Kiambi project mining license to the joint venture company, issue US$100,000 in shares, pay A$110,000 in cash after 12 months, and shoulder an environmental report fee of US$30,000.
Meanwhile, the company must complete a payment of US$50,000 to Cominiere by Sept. 15 and an additional US$62,000 upon formalizing the joint venture for the Kitotolo project.