Tanga Resources (ASX: TRL) has shouldered into the battery metal space after agreeing to acquire the Hagenhof copper-cobalt project in Namibia.
The company has entered a binding agreement to acquire all the issued capital of Aloe Investments One Hundred and Ninety Two Pty Ltd, which is a Namibian company that wholly-owns the project.
As part of the acquisition, Tanga will pay the vendor US$50,000.
“We are excited to have added exposure to key battery metals copper and cobalt through this deal, while the gold potential within Hagenhof certainly warrants further investigation,” Tanga chief executive officer Matthew Bowles said.
Hagenhof covers 197 square kilometres and Tanga has identified “multiple walk up copper-cobalt drill targets”.
During due diligence, Tanga took samples of outcropping mineralisation which assayed up to 3.24% copper, 303 parts per million cobalt and 0.6 grams per tonne gold.
According to Tanga, 11 samples were collected with copper values averaging 1.65%. A follow up field trip picked up 80 soil samples and eight rock chips, with assays from this trip pending.
Additionally, historical drilling returned 18m at 0.90% copper from 93m, including 12m at 1.08% copper from 96m and a smaller 3m interval with 2.37% copper.
A review of historical data also revealed up to 1,200ppm cobalt. Although, Tanga has identified gold at the project, there was no data on the precious metal in historical drilling or reports.
“We are delighted to have secured a 100% interest in this highly prospective copper-cobalt project in a world-class, politically stable jurisdiction,” Mr Bowles said.
“The highly encouraging results returned in our initial sampling program, coupled with the historical copper results, have give us confidence that Hagenhof is a worth acquisition and will fit neatly into the Tanga portfolio alongside our other Namibian asset, Joumbira,” he added.
Once Tanga has received the assays from the recent field trip, it will review the new and historic data to firm up targets for a reverse circulation drilling program.
Tanga already has a presence in Namibia through the Joumbira zinc-lead-silver project, where it holds the right to earn up to 90%.
Joumbira encompasses 210sq km and is also believed prospective for cobalt, copper, tin and tungsten.
By midday, shares in Tanga were steady at A$0.008.