Orosur Mining Inc - Lithium JV, Nigeria
Orosur Mining Inc - Lithium JV, Nigeria
• Company signs Exploration JV to cover four licences across the
Nigerian Lithium belt.
• Exploration programs to start immediately.
• Full exploration team and infrastructure in place.
London, October 16th 2023. Orosur Mining Inc. ("Orosur" or the
"Company") (TSXV/AIM:OMI), the minerals explorer and developer
operating in Colombia, Argentina and Brazil, is pleased to announce that as
a continuation of the Company's strategy of securing high quality mineral
exploration opportunities in key jurisdictions, the Company has signed a
joint venture ("JV") agreement to explore a number of exploration licences
across Nigeria (the "Project") which the Company considers to be highly
prospective for Lithium mineralisation.
The Company has long been examining an entry into the Lithium space to
add to its diversified portfolio of high-quality exploration assets but had
found few attractive South American opportunities.
Nigeria however is rapidly emerging as one of the most prospective regions
of Africa for the discovery of lithium pegmatite mineralisation and as such is
now seeing a very high level of interest and activity. The Company's
executive team has substantial operating experience and high-level
relationships in Nigeria, and the Company has been leveraging these
factors over the last 12 months to gain substantial land positions in
Nigeria's prime lithium pegmatite districts.
A team of experienced geologists is in place, with all necessary equipment
and logistical support such that field programs will be commencing
immediately. Work will start initially with preliminary reconnaissance, and it
is expected that results and additional work can advance quickly.
Details
The Company has signed a JV with Nigerian company Jurassic Mines Ltd
("Jurassic"), whereby Orosur, via a new 100% owned UK subsidiary,
Lithium West Limited ("Lithium West"), may earn up to 70% equity in the
Project in two phases:
1. Phase 1 - Lithium West can earn 51% equity in the Project by
spending a total of US$3m over a maximum of three years.
2. Phase 2 - Lithium West can earn an additional 19% equity in the
project, up to a total of 70%, by spending an additional US$2m over a
maximum of two years.
The Project at inception will comprise four exploration licences across
Nigeria's primary pegmatite belt, covering a total of circa 322km2. Other
prospective areas are currently being examined and it is possible that
additional licences may be added to the Project in the near term.
All licences have been specifically chosen due to their location within the
major lithostructural corridors that are known to control lithium pegmatite
mineralisation in this region.
Geology
Nigeria has long been known to have substantial potential for pegmatite
mineralisation, however historically these pegmatites were largely exploited
at the artisanal level for other metals such as Niobium and Tantalum. As
such, little geoscientific information was publicly available related to any
lithium potential.
However, in early 2018, the Nigerian Ministry of Mines and Steel
Development began to undertake major geoscience mapping projects
across the bulk of Nigeria's crystalline basement rocks to better define the
mineral potential as the key plank in a far-sighted strategy to reduce the
country's dependence on oil. These projects covered a range of
commodities and were referred to as the National Integrated Mineral
Exploration Project (NIMEP). This work indicated that the country indeed
had substantial lithium pegmatite potential, especially in the southern
regions.
Fig 1 Schematic, Nigerian Geology
As a result, Nigeria has, in the last 12 months, seen a sharp increase in
small scale artisanal lithium mining of obvious outcropping pegmatites, with
a corresponding and similarly sharp increase in modern exploration across
the region by international public and private companies.
Orosur began to examine opportunities in Nigeria in mid-2022, focusing on
regional geological assessment and land selection, leading to this current
JV with Jurassic.
Rationale and Experience
The Company has been examining options to enter the lithium space for
some years, based initially on Andean brines and Brazilian
pegmatites. However, it became apparent that these regions had become
extremely competitive, with correspondingly high entry costs, which the
Company felt were not commensurate with the quality of projects on
offer.
Nigeria was then examined because of the extensive in-country experience
of the Company's executive team and because the Country's lithium
pegmatite potential is, to a large extent, a geological mirror image of the
pegmatite fields in northeastern Brazil. The Company commenced the
process of examining entry strategies, based upon a detailed assessment
of geological potential, rather than simply on what was being offered.
Orosur worked closely with its new Nigerian partner, Jurassic, to carry out
regional targeting exercises that ultimately led to these first four licences
being pegged as vacant ground, specifically for this JV, rather than vending
into pre-existing licences.
In addition, the Company has, via its long-standing relationships and
experience, aligned itself with a highly experienced local exploration
consultancy which will provide the Company with access to exploration
teams with associated field logistics, drill rigs, assay equipment and
extensive geological knowledge, thus allowing the Company to operate in
the region without any major upfront investment or addition of substantial
overhead.
Orosur CEO Brad George commented:
"Orosur has been examining entry into the lithium space for several years,
but as with our other projects, we have pursued an early stage, low entry
cost strategy, based upon detailed geological understanding of the local
mineralising systems. Nigeria is clearly on a different continent, but with the
extensive Nigerian experience of myself and our Chairman Louis Castro,
together with our partner's excellent local team, we are entirely confident in
our ability to develop this exciting opportunity in Nigeria in harmony with our
equally exciting South American assets which we will continue to progress
as planned."
For further information, visit www.orosur.ca , follow on twitter @orosurm or contact:
Orosur Mining Inc.
Louis Castro, Chairman,
Brad George, CEO
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & Joint Broker
Jeff Keating / Kasia Brzozowska
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker/James Pope
Tel: +44 (0)20 3657 0050
Flagstaff Communications and Investor Communications
Tim Thompson
Mark Edwards
Fergus Mellon
Tel: +44 (0)207 129 1474
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been
incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the
public domain.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a minerals explorer and developer focused on identifying and
advancing projects in Colombia, Argentina, Nigeria and Brazil.
Qualified Persons Statement
The information in this news release was compiled, reviewed and verified by Mr. Brad George, BSc Hons (Geology
and Geophysics), MBA, Member of the Australian Institute of Geoscientists (MAIG), CEO of Orosur Mining Inc.
and a qualified person as defined by National Instrument 43-101.
Forward Looking Statements
All statements, other than statements of historical fact, contained in this news release constitute "forward looking
statements" within the meaning of applicable securities laws, including but not limited to the "safe harbour"
provisions of the Unite d States Private Securities Litigation Reform Act of 1995 and are based on expectations
estimates and projections as of the date of this news release.
Forward-looking statements include, without limitation, the exploration plans in Colombia and the fundi ng from
Monte Águila of those plans, Monte Águila´s decision to continue with the Exploration Agreement, the formation of
a new mining company or mining venture to hold the project, the ability for Loryser to implement the Creditor´s
Agreement successfully in Uruguay and other events or conditions that may occur in the future. The Company's
continuance as a going concern is dependent upon its ability to obtain adequate financing, to reach profitable levels
of operations and to reach a satisfactory implement ation of the Creditor´s Agreement in Uruguay. These material
uncertainties may cast significant doubt upon the Company's ability to realize its assets and discharge its liabilities
in the normal course of business and accordingly the appropriateness of the use of accounting principles applicable
to a going concern. There can be no assurance that such statements will prove to be accurate. Actual results and
future events could differ materially from those anticipated in such forward -looking statements. Such statements
are subject to significant risks and uncertainties including, but not limited, those as described in Section "Risks
Factors" of the MDA and the Annual Information Form. The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new information, future events and such forward -
looking statements, except to the extent required by applicable law.