Lithium exploration and development company, Force Commodities Limited (ASX: 4CE) is focused on the advancement of its Democratic Republic of Congo (DRC) lithium projects – Kitotolo Lithium Project and Kanuka Lithium Production Project.
The company’s Kanuka Project comprises two contiguous licenses: granted Mining License PE13082 and Exploration License PR4100 which covers an area of around 194km2 and are located 20km east of the Company’s other lithium project, Kitotolo Lithium Project. The project is a Joint Venture between Force Commodities (51%) and MMR (49%), Tin and Tantalum exploration company.
In December 2018, the company announced the assay results from the Company’s Phase 1 RC Drilling Program at the Kanuka Lithium Production Project which confirmed the presence of widespread, from-surface, multiple stacked and parallel, high-grade lithium mineralised pegmatites.
The company’s Kitotolo Lithium Project is prospective for lithium, tin and tantalum mineralization. The project is a Joint Venture between Force Commodities (70%) and La Congolaise d’Exploitation Minière (30%).
The project comprises Exploration License PR 12453 and Mining License PE 13247, located 30km south west of ASX listed AVZ Minerals’ (ASX: AVZ) Manono Project which is considered as one of the largest lithium-rich LCT (lithium, caesium, tantalum) pegmatite deposits in the world. Initial geological and structural mapping of samples taken from this project highlighted the potential for economic mineralisation on the Kitotolo Lithium Project. In December 2019, the company completed the Phase One RC Drill Program, targeting near surface lithium mineralization.
During 2018, the Company entered into sale agreements to dispose of its Mt Adrah Gold Project and its Halls Peak Base Metals Project. The company had agreed to sell its interest in the Mt Adrah Gold Project (comprising Exploration Licenses EL7844, EL8606 and EL 6372) to Wildcat Resources Pty Ltd. The company has already received the approval for the transfer of two of these licenses and it is in the process for third license transfer. The company has executed all the necessary sale and purchase documentation and associated agreements with regards to the sale of the Mt Adrah Gold Project.
Force Commodities is expecting the sale to be completed shortly with total net cash consideration of A$250,000 and the reimbursement of environmental performance bonds of A$30,000 to be received by Force. The company is expected to obtain additional A$50,000 worth ordinary shares on Wildcat completing its IPO on ASX or Reverse Merger Transaction.The financial settlement of the transaction is now subject only to approval from the NSW Minister for Resources, given the change in effective control of the license holder.
Recently the company confirmed that it will not be proceeding with the divestment of its interest in its Halls Peak Project in NSW. The Company’s decision to not proceed with this proposed divestment of the granted exploration licenses, that are considered highly prospective for high-grade lead, silver, copper and zinc, follows a strengthening in these commodities fundamentals and the ongoing review by the Company of a number of highly complementary projects located in Central Africa.
At the time of writing, i.e., on 4th April 2019, the stock of the company closed the day’s trading at a price of A$0.010 with the market capitalisation of ~A$4.25 million.
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