Discovery Africa Limited recently executed a Memorandum of Agreement (‘MOA’) for the proposed acquisition of up to 80% of the issued capital in Hatua Resources (T) Limited (‘Hatua’), a Tanzanian incorporated Company that holds the rights to four exploration licences located in Tanzania, which are prospective for Graphite.
The Projects are located in South-East Tanzania and comprise 4 licences over three project areas which are in close proximity and cover approximately 416km2. In addition the region has high quality infrastructure including access via mainly sealed roads from the coastal towns of Lindi and Mtwara which also boast an airport and deepwater port facilities.
The Projects substantially overlay the graphite prospective Mozambique Mobile Belt with graphitic schists located both within and surrounding the Projects. At the Injaa Hill project area outcrops of graphitic schist have been mapped by the Geological Survey of Tanzania extending 800m x 150m and represent near term targets ready for trenching and drilling. Early reconnaissance mapping identified high grade seams of graphite in the other project areas.
The Company’s due diligence will further assess the results of previous exploration programs carried out on the Projects area with the aim of increasing the potential of mineralisation previously identified on the Projects and to define additional targets.
The consideration to be paid under the MOA are as follows:
More details will be provided following the completion of due diligence on the licences and Hatua.
Figure 1. Location map of the large graphite tenement package (red solid outlines) to be acquired by Discovery Africa showing proximity of major infrastructure.