Caerus Mineral Resources PLC (LSE:CMRS) said it has entered into an exclusive option agreement with major shareholder EV Metals (EVM) to acquire 90% of Saudi-focused RIWAQ Al Mawarid for Mining (RIWAQ).
RIWAQ is a special-purpose subsidiary of EVM focused on the production of critical metals in the Kingdom of Saudi Arabia from exploration, mining and processing.
It already has a significant portfolio of projects in Saudi comprising key battery components such as nickel, cobalt, copper, platinum group metals and rare earth elements.
Caerus said it will pay a fully refundable £500,000 deposit in return for an extendable three-month due diligence period of RIWAQ's portfolio, which comprises 11 granted exploration licences alongside 142 licence applications.
The granted licences also encompass 1,093 square kilometres in Balthaga, an area known to be prospective for lithium pegmatites.
EVM has been operating in the Kingdom since 2018 and has established offices in Jeddah and Al Khobar.
In a statement, Chris Lambert, Caerus’ chairman, said: "We are delighted to announce this agreement. It is entirely in line with our evolved strategy to invest in larger-scale opportunities. We are moving to a world powered by critical minerals for energy storage, EV batteries and alternative renewable energy sources.
“Whilst Caerus is set to undertake a comprehensive review of the licences, we believe they hold considerable value for the energy revolution and the opportunity for long-term development.
"With Vision 2030, Saudi Arabia has made clear its intentions regarding the development of its mining sector - namely it is a vital industry pillar for development.”
Caerus said its deposit is refundable with the option to acquire 90% of RIWAQ exercisable on or before 30 April 2023.
EVM is a major shareholder in Caerus with a 16.3% stake currently.