Patriot Lithium Enters into Option Agreement for Katwaro Copper Project

Patriot Lithium, a battery metals exploration company, has entered into a binding option agreement to acquire an 80% interest in the Katwaro Copper Project located in Zambia from Array Metals and Natural Resources. This strategic move is intended to diversify Patriot Lithium’s asset portfolio and enhance its jurisdictional diversity.

The Katwaro Project, situated near Mumbwa, covers an area of 400 hectares and features a historical open-pit mine known for its copper-bearing meta-sediments. Under the terms of the agreement, Patriot Lithium will pay Array Metals $25,000 (approximately A$37,172) for an exclusive 12-month option period. If the company decides to exercise this option, a special purpose vehicle (SPV) will be established, and the project will be transferred into this SPV after an additional payment of $250,000 to Array Metals.

For a duration of 48 months from the date the option is exercised or the project is transferred to the SPV, Patriot Lithium will be responsible for funding exploration and feasibility studies. The agreement includes a provision that if the SPV delineates a JORC-indicated resource of five million tonnes (mt) at a grade of 2% copper, Patriot Lithium will make an additional payment of $400,000 to Array Metals. Should the resource increase to another five million tonnes at the same grade, a further $400,000 payment will be required.

During the option period, Patriot Lithium is conducting due diligence to ensure that the Katwaro Project aligns well with its lithium assets, focusing on factors such as native title, sovereign risk, and alternative weather windows for exploration activities. In the fourth quarter of 2024, the company plans to review both historical and current exploration data, perform geological surface mapping, and conduct geochemical surveys at the Katwaro site.

This acquisition comes on the heels of a setback at Patriot Lithium's Gorman Lithium Project in Canada, where access for a drilling program was denied by a First Nation Band. As a result, the company is expanding its operations into other jurisdictions, beginning with the Katwaro acquisition.

Patriot Lithium emphasizes the significance of copper within the battery metals sector and acknowledges Zambia's crucial role in the global copper market, supported by a favorable mining environment. Due to winter conditions in the Northern Hemisphere, exploration activities at the company's North American projects will be limited during Q4 2024. Nonetheless, Patriot Lithium remains committed to negotiating land access and planning for the resumption of exploration activities in the spring. Earlier this year, in January, the company acquired 61 mining claims in Ontario from Beyond Lithium, further solidifying its growth strategy in the battery metals landscape.