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  • Metals Of Africa Adds To Key Graphite Exploration Assets In Mozambique 0 comments
    Aug 25, 2014 7:20 PM

    Metals of Africa (ASX:MTA) has upped the exploration stakes in the renowned graphite province of Cabo Delgado in Mozambique with a binding agreement to acquire the Balama Central Project (license 4118).

    Significantly, the project gain is along strike and adjacent to Syrah Resources' (ASX:SYR) monster Balama Graphite Project.

    The Balama Central Project has not been subject to any previous systematic or on the ground exploration. It has a main road passing through the middle of the license.

    Final due diligence will take up to six weeks, then exploration will commence immediately at the new project.

    Consideration terms are a mixture of cash and shares.

    Syrah Resources' Balama Graphite Project has the world's largest graphite resource, of 1.15 billion tonnes at 10.2% Total Graphitic Carbon (NYSEMKT:TGC) and 0.23% Vanadium Oxide (V2O5).

    Metals of Africa executive director Cherie Leeden said of the acquisition:

    "The Cabo Delgado district in Mozambique is the place to be for graphite and vanadium exploration.

    "We are excited at the opportunity to acquire this new graphite exploration asset and, on successful completion of due diligence, we look forward to finalising the acquisition and commencing exploration immediately along strike of the world's largest and most valuable graphite and vanadium resource."

    Key deal terms to acquire License 4118 are:

    - On the Signature Date (21st August 2014) the Buyer will pay the Seller a payment of US$50,000 (First Cash Payment), being the first part payment for transfer of the Licence; and

    - On the Completion Date (on or before 2nd October 2014) the Buyer will issue to the Seller or its nominee such number of fully paid ordinary shares in the Buyer (Consideration Shares) as would have a market value of US$200,000 based on certain conditions; and

    - On the Completion Date the Buyer will pay the Seller US$200,000 (Second Cash Payment), being the third and final payment for transfer of the Licence.

    Analysis

    This ups the stakes for MTA's graphite asset portfolio with most of its licenses nestled neatly along strike of Syrah's Balama Graphite Project.

    Recent laboratory results confirmed MTA has high grade, large flake graphite mineralisation at its Montepuez Graphite Project. The Montepuez Project comprises three licenses, Montepuez East, Central and North.

    The results are from rock chips and are present in outcrop at surface mineralisation, and show up to 16.5% total graphitic carbon (TGC) and up to 0.31% vanadium.

    Drilling at Montepuez will commence in October.

    That project is located in the world class Cabo Delgado graphite province with two of the licences that make up Montepuez located along strike from Syrah Resources and Triton Minerals' (ASX:TON) projects.

    In July MTA completed a placement issuing 7,604,000 shares at $0.125 per share to raise $950,000.

    With MTA just 79 million shares on issue, the company is highly leveraged to newsflow.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China

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