Critical Mineral Resources has signed binding heads of terms to earn-in to the Zagora cobalt project in Morocco.
Zagora is approximately 90km south of the 100-year-old Bou Azzer district where cobalt is mined by Managem, a group that has agreements to supply the battery metal to BMW and Renault.
Cobalt grades taken from samples at Zagora were equivalent to approximately 6.5g/t gold or 4.7% copper at current metal prices, CMR added, while the near-surface cobalt structure provides the potential for a shallow discovery.
Through the farm-in, CMR and its subsidiary Atlantic Research Minerals (ARM) will invest sufficiently into Zagora to produce a JORC standard scoping study before progressing to a Pre-Feasibility Study and Definitive Feasibility Study assuming positive results.
ARM's interest will start at 20-25% rising to 70% on delivery of a Definitive Feasibility Study.
Charlie Long, CMR chief executive, commented: "This agreement strengthens our position in the critical minerals sector.
“Morocco's cobalt industry and associated demand dynamics, combined with its position as a fast-growing battery materials hub, means there is clear demand for new cobalt projects.
“The near-surface mineralisation at Zagora is exciting.”