Force Commodities (ASX: 4CE) has announced its almost finalised due diligence for its proposed 70% stake in the Kitotolo and Kiambi lithium projects.
Based in the Democratic Republic of Congo’s (DRC) Tanganyika Province, the projects are believed prospective for lithium, tin and tantalum.
In early August, Force Commodities inked a binding heads of agreement (HoA) with Lithium Age Pty Ltd (LAPL) to acquire LAPL’s 70% stake in Kitotolo and Kiambi.
The HoA was subject to due diligence and regulatory approvals.
Legal due diligence has been finalised, while technical due diligence is scheduled to wrap up by 29th September 2017, with site investigations already completed.
Trenching and mapping have been carried out at the project areas, with rock chip and channel samples transported to Johannesburg for analysis.
Experienced geologist James Sullivan was tasked with preparing the report, which will include recommendations and a summary of all due diligence activities.
The report and assay results will be submitted to Force Commodities’ board on 10th October 2017.
Formerly known as Sovereign Gold Company (ASX: SOC), Force Commodities currently owns two projects: Halls Peak (base metals) and Mt Adrah (gold) in New South Wales. The company also holds a majority stake in another NSW-based gold asset.
According to Force Commodities, the Kitotolo project concession overlays a portion of the Manono-Kitotolo pegmatite, with high grade lithium mineralisation previously identified along 13km of strike.
The Kiambi project area is 50km from Manono and has road access and proximity to a hydro-electric power plant.
Industry forecaster Roskill predicts the lithium market will continue its upward trajectory till 2026 due to the expanding lithium-ion battery market. Li-ion batteries are increasingly used in consumer electronics and in electric vehicles.
Shares in Force Commodities were up 8.5% in early afternoon trade.