Critical Mineral Resources plc (CMR) has signed a binding heads of terms to earn-in to the Zagora cobalt project in Morocco.
MILESTONES
The project, 25km southwest of Zagora City and 90km south of the Bou Azzer mining district, has shown near-surface cobalt mineralisation with the “potential for a shallow discovery”.
CMR said that assays from due diligence samples recorded 1.15% cobalt.
The company and its subsidiary Atlantic Research Minerals SARL (ARM) signed the deal with the shareholders of project owner S.A Strategy SARL.
The transaction will see ARM produce a JORC standard scoping study, a pre-feasibility study and a definitive feasibility study on positive results, with payments in cash and CMR shares.
The subsidiary’s initial interest of 20-25%, subject to a formal agreement, will rise following development milestones to 70% on delivery of a definitive feasibility study.
DYNAMICS
CMR chief executive officer Charlie Long said that the agreement strengthened the company’s position in the critical minerals sector.
“Morocco’s cobalt industry and associated demand dynamics, combined with its position as a fast-growing battery materials hub, means there is clear demand for new cobalt projects.
“The near-surface mineralisation at Zagora is exciting and the team will now progress with the development of the project.”