Cyclone Metals Ltd (ASX:CLE) has inked a binding exclusivity agreement with Ewaah Cameroon Ltd to obtain the right to purchase 100% of issued capital of Camdu Corporation Ltd, which has applied for the mining permit covering the project area of a “world-class” cobalt-nickel-manganese deposit in Cameroon – the Nkamouna-Mada Project.
Cyclone will issue 50 million fully paid ordinary shares at a price of $0.005 per share and 50 million unlisted options at $0.01 a share, expiring 12 months from the date of issue, in return for acquiring the mining licence.
The shares will be issued within five days of the mining permit being granted, subject to CLE’s due diligence undertaken during the exclusivity period.
“Game changer for the company”
“To secure the exclusive rights to this asset is a game changer for the company,” Cyclone Metals non-executive chair Terry Donnelly said.
“The licences have been highly sought after by many parties in the battery metals space for several years.”
The Nkamouna-Mada Cobalt-Nickel-Manganese Deposit holds a Canadian standard, non-JORC NI43-101 resource of 323 million tonnes at 0.21% cobalt, 0.61% nickel and 1.25% manganese, with a measured and indicated portion of 120.6 million tonnes at 0.23% cobalt, 0.65% nickel and 1.25% manganese.
While there is no guarantee these 2011 resource numbers will be converted into an equivalent JORC resource, they do represent a huge potential deposit of highly sought-after battery metals – the demand for which is only increasing.