Bass Metals (ASX: BSM) has completed due diligence of the Millie’s Reward lithium project in Madagascar, and now will proceed with the acquisition, which is expected to be finalised in less than a month.
In April, the company announced it had entered an agreement with Ruby-Red Madagascar to acquire the project, which includes two mining permits and lithium mining rights for a third permit, for an initial payment of US$100,000 and US$50,000-worth of shares. This will be followed by three other similar payments upon reaching future mile stones.
Bass Metals has made the decision to proceed with the purchase after completing the three-month due diligence.
As part of the due diligence, technical work at Millie’s Reward confirmed high grade lithium mineralisation grading up to 7.08%.
The company also verified all necessary approvals were in place for the purchase.
Initially focused on producing from its Graphmada large flake graphite mine, Bass Metals anticipates the Millie’s Reward asset will cement its presence in Madagascar and further its strategy in becoming an industrial mineral concentrate producer.
“The potential acquisition of Millie’s Reward is consistent with Bass Metals’ strategy to leverage its in-country producer status in Madagascar to appraise further opportunities in this highly prospective jurisdiction,” Bass Metals chief executive officer Tim McManus said.
“The team at Bass Metals are pleased to now be working on finalising this transaction, with a view to commencing phase one exploration as soon as possible.”
Preliminary exploration at Millie’s Reward has revealed spodumene mineralisation across 8km of strike and identified 55 pegmatite occurrences.
As soon as the purchase agreement for Millie’s Reward has been signed, Bass Metals will start exploration to define a mineral resource.
Due to the company’s existing government, supply and other relevant connections, Bass Minerals believes fast-tracking the project to development within three years is achievable.
Millie’s Reward already has potential access to power, road, water, accommodation and a local workforce with the Holcim talc mine nearby.