Australasian Metals Secures Option Over Côte d’Ivoire Lithium Projects

Australasian Metals (ASX: A8G) has secured an exclusive three-month option with Firering Strategic Minerals plc to acquire majority interests in the Atex lithium-tantalum and Alliance lithium projects in Côte d’Ivoire.

Australasian will pay an A$100,000 option fee and, if it exercises the option and the conditions precedent are satisfied, A$1.4 million at completion for a 75% interest in Atex and an initial 51% interest in Alliance, subject to the project’s licence being granted.

Atex already hosts historical lithium mineralisation over more than 800 metres of strike, with drilling including 67.97m at 1.23% lithium oxide (Li2O) from 68.4m and 20.77m at 1.65% Li2O from 79.48m.

The known mineralisation remains open along strike and at depth, with Australasian planning further trenching and both reverse circulation and diamond drilling if it progresses the project.

The company will use the option period to complete technical, legal, and commercial due diligence and prepare for a maiden drilling program before deciding whether to proceed with the acquisition.

Historical Atex Results

Atex is prospective for lithium-caesium-tantalum pegmatites within the Baoulé-Mossi domain of the West African Craton, with spodumene and lepidolite identified in several pegmatite bodies around Spodumene Hill.

Historical diamond drilling also returned 5.91m at 1.48% Li2O and 17.59m at 0.84% Li2O in one hole, while the reported pegmatite intercepts represent apparent widths that are greater than true widths, which have not yet been established.

Firering followed the 2022 diamond campaign with 23 RC holes totalling 3,753m in 2024, while soil geochemistry and auger drilling identified additional pegmatite targets that remain untested.

“Historical drilling at Atex has delivered exceptional drill results, and we see significant upside through systematic exploration and resource definition,” managing director Qingtao Zeng said.

“This acquisition aligns with our strategy to build a diversified critical minerals portfolio while maintaining disciplined capital management, [and] we look forward to working with Firering during the option period to unlock value from these highly prospective assets.”

Transaction Structure and Funding

At completion, Australasian will become operator of the projects, with the Atex joint venture comprising Australasian at 75%, Firering at 15% and the existing partner at 10%.

The Alliance structure will initially give Australasian 51% and existing partners 49%, while Firering will transfer an option over a further 29% interest that could provide Australasian with a pathway to increase its holding to 65% under the agreed participation terms.

Firering’s interest in the joint venture will be free carried until a final investment decision, during which period Australasian will fund the joint venture activities, while Australasian will also have an option to acquire Firering’s remaining interests for A$5m plus a 1% revenue royalty.

Australasian has received commitments to raise A$1m through the issue of 7,693,308 shares at A$0.13 each, with the funds earmarked for exploration at Atex and Alliance and general working capital.

The purchase consideration is expected to be funded from the placement and existing cash reserves of about A$2.3m.

Due Diligence Period

Australasian intends to undertake site visits during the option period to verify historical exploration results and drilling data, complete further geological mapping, collect representative samples, and begin preliminary metallurgical test work.

A number of reviews will run in parallel to confirm permit status, ownership, regulatory compliance, and the commercial standing of the projects.

The Atex exploration permit is granted and runs until 15 November 2027, while the Alliance exploration licence remains an application and therefore the proposed 51% acquisition is subject to that licence being granted.

Australasian also intends to begin public consultation and permitting work required for its planned maiden drilling program, with the due diligence findings to determine whether it exercises the option.