Desert Metals (ASX:DM1) has settled and completed its acquisition of mineral explorer, CDI Resources Limited, and subsequently completed an oversubscribed $3.75 million share and option placement to fund drilling and exploration in Côte d’Ivoire.
Figure 1: Location and geological plan of Desert Metals’ new projects in Côte d’Ivoire
West African Exploration
The Company announced in December last year its strategic move into the West African mining sector through its acquisition of 100% of CDI Resources, a Côte d’Ivoire-based gold and lithium explorer.
CDI holds interests in seven gold and lithium projects covering a substantial 2,769 square kilometres of granted mineral permits and permit applications in Côte d’Ivoire under low-cost joint venture arrangements.
These Projects include the Tengrela South Gold Project, Adzope Gold Project, Agboville Lithium Project, Kounahiri, Vavuoa and Vavoua West Gold Projects.
CDI’s Tengrela South Project, located in the Syama-Boundiali greenstone belt, has demonstrated significant gold mineralisation with historical drilling revealing promising results including 8 metres at 30.0g/t gold and 40 metres at 1.0g/t gold.
Its Adzope Gold Project, an application project, exhibits extensive alluvial, eluvial, and hard-rock gold mineralisation.
The Agboville Lithium Project, comprising over 1,000 square kilometres of mineral permit applications, focuses on areas where lithium, beryllium, tantalum, and rare earth mineralisation have been identified in government mapping.
Desert Metals aims to enhance its existing portfolio, which includes nickel, rare earth, and gold assets in Western Australia’s Yilgarn Craton, with the acquisition aligning with the Company’s growth strategy and leveraging the untapped mineral potential of Côte d’Ivoire.
Additionally, Desert Metals has announced it has completed a heavily oversubscribed share Placement raising $3.75 million (before costs) through the issue of 115.4 million fully paid ordinary shares at an issue price of $0.0325 per share to sophisticated and professional investors.
The Placement also contained options to acquire shares on the basis of one option for every two shares subscribed for and issued.
The Company has outlined the proceeds from the capital raising effort will be utilised to advance expenditure on its existing projects, expenditure on its newly acquired CDI projects, working capital and corporate administration.
In light of completing the acquisition, Desert Metals welcomes Stephen Ross as a non-executive director and manager of the Côte d’Ivoire Projects.
He brings an extensive 28-years of experience in West Africa, helping the Company navigate this new mining jurisdiction.
Côte d’Ivoire Potential
Côte d’Ivoire has significant untapped mineral potential and a government committed to growing the mining sector, making it an attractive destination for mining investments in West Africa.
Furthermore, gold production has expanded rapidly, rising from 400,000 ounces in 2012 to 1.5 million ounces in 2022.
Côte d’Ivoire hosts eight operational gold mines managed by major industry players such as Barrick Gold, Endeavour Mining, and Perseus Mining, and as of June 2022, Côte d’Ivoire had granted 124 exploration permits.
Desert Metals’ Managing Director Robert Stuart commented on the acquisition and Placement.
“Desert Metals is extremely pleased to have completed the acquisition of CDI Resources, with its impressive portfolio of highly prospective gold and lithium projects in Côte d’Ivoire including, in particular, the Tengrela South project located within 30 kilometre of Sissingué gold mine and 10 kilometres of the Atex lithium discovery,” he said.
“A 3,300 metre aircore drilling program is underway at Tengrela South and we look forward to the first round of results. Also, the appointment of highly experienced ASX director and West African operator Stephen Ross is an exceptional addition to the Company.”
“Mr. Ross will be in Côte d’Ivoire during February and March supervising operations which will help us accelerate our exploration plans and understanding of these new projects.”
DM1’s Australian Securities Exchange-listed share price is currently trading at $0.035 (11.50am UTC+ 8 hours).