(Alliance News) - Orosur Mining Inc on Monday said it signed a joint-venture deal with Nigeria-based Jurassic Mines Ltd to cover four licences across the Nigerian lithium belt.
Shares in Orosur were 5.8% higher at 2.27 pence each in London on Monday morning.
The South America-focused minerals explorer and developer said the project at inception will cover a total of 322 square kilometres.
Under the agreement, Orosur said it may earn up to 70% in equity through its new 100% owned UK subsidiary, Lithium West Ltd. It added that 51% equity in phase one would come from spending a total of USD3 million over a maximum of three years, and an additional 19% equity in phase two by spending an additional USD2 million over a maximum of two years.
Other prospective areas are currently being examined and it is possible that additional licences may be added to the project in the near term, Orosur said.
Orosur said it has been looking to move into the lithium market, and while its main focus is in South America, the miner said the region has become "extremely competitive, with correspondingly high entry cost".
"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," it said.
Chief Executive Officer Brad George said: "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 [chair] 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."
By Sabrina Penty, Alliance News reporter
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Orosur Mining (OMI)