AJN Resources Inc (CSE:AJN) announced that it has entered into a binding term sheet with Future Mining Company SARL for an option to acquire up to a 70% indirect interest in highly prospective lithium exploration permit PR 14537 located in the Manono Territory of the Democratic Republic of Congo (DRC).
The junior exploration company said PR 14537 borders AJN's recently optioned PR 15282 exploration property to the west and potentially covers four kilometres of a second pegmatite interpreted to crosscut the central licence area.
"We are extremely excited about this latest acquisition as we have now covered the extension of the Manono pegmatites to the northeast," AJN Resources CEO Klaus Eckhof said in a statement.
"We are confident that by conducting shallow drilling programmes we will be able to identify any extension of the Manono pegmatites onto both licences under agreement," he added.
AJN noted that it will pay US$100,000 to Future Mining within 10 days of the date on which the term sheet is fully signed, upon which AJN will have up to six months to conduct legal, financial and technical due diligence, which will include soil sampling, trenching and, if warranted, a short drill program.
It added that field work is expected to begin within the coming weeks.
As well, AJN stated that at the conclusion of the due diligence program it will notify Future Mining if it intends to exercise its option to acquire up to a 70% indirect interest in PR 14537, which would involve paying an additional US$1 million and issue seven million AJN common shares to Future Mining to acquire a 60% indirect interest in PR 14537, plus pay another US$5 million to Future to buy a further 10% indirect interest.
AJN also said it will be responsible for funding exploration of PR 14537 to conclusion of a definitive feasibility study, in which the funding will be treated as a loan.
At completion of the definitive feasibility study and should AJN wish to continue, each party will contribute on a pro-rata basis or dilute according to an industry standard formula, with AJN arranging all project finance, which will be recovered as a priority from production, according to the company.
AJN Resources is a junior exploration company with a focus on Africa, especially the Democratic Republic of the Congo.
Contact Sean at sean@proactiveinvestors.com