Patriot Lithium expands into copper with 80% earn-in agreement at Katwaro project in Zambia

Battery metals explorer Patriot Lithium (ASX: PAT) has secured an agreement with Array Metals and Natural Resources to earn an 80% interest in the Katwaro copper project in Zambia.

Patriot is keen to add copper to its portfolio as an essential component in the battery metals sector and for other industrial uses.

It believes Katwaro will complement its lithium assets and provide jurisdictional diversity with respect to native title and sovereign risk, as well as alternative weather windows for exploration.

Valuable addition

Patriot executive chair Hugh Warner said Katwaro would be a valuable addition to the company’s flagship Gorman lithium project in Canada, where maiden drilling was recently paused due to land access issues.

“While negotiations to drill at Gorman continue, the board has decided to expand our project portfolio into other jurisdictions, commencing with the acquisition of the option to acquire an 80% interest in Katwaro,” he said.

“Zambia hosts a significant share of the world’s copper resources and has an established mining jurisdiction, with a history of supporting mineral exploration, mining and product export.”

“We believe it will be a fitting complement to our lithium assets.”

Due diligence option

Under the terms of the earn-in proposal, Patriot will make a US$25,000 payment to Array in return for a 12-month option to conduct due diligence on Katwaro, during which time it can elect to acquire an 80% interest in the project.

If it decides to proceed, the companies will incorporate a subsidiary to house Katwaro and Patriot will pay a further US$250,000 to Array.

Patriot will fund 100% of the project’s exploration and feasibility costs for a period of 48 months after it has been transferred to the subsidiary.

Mineral resource earn-in

If Patriot delineates an indicated mineral resource of at least 5 million tonnes grading at 2% copper during the exploration period, it will pay Array US$400,000.

An additional 5Mt at the same grade would see Patriot pay Array a further US$400,000.

If Patriot and Array decide to develop and mine any deposits at Katwaro during the first four years of the earn-in agreement, Patriot will transfer its entire interest back to Array.

Alternatively, it may elect to extend the exploration period by 12 months for an additional fee of US$50,000.

Katwaro location

The Katwaro project is located across 4 square kilometres under a small-scale mining licence in Zambia’s central province.

The tenement comprises a historical open-pit mine exposing copper-bearing metasediments along 100m of strike, which remains open-ended.

Polymetallic sulphide occurrences in the area have been known for centuries, while more recent geophysical and geochemical investigations have led to the discovery of a copper-rich hydrothermal system.

Patriot believes these exposed host rocks, together with the area’s known history, warrant further consideration during Katwaro’s due diligence phase to determine if it should proceed with the earn-in.