Lithic on expansion path
Article Date: Nov 02 2007Nickel, uranium, chrome and zinc in Mozambique, Togo and Zambia are among Lithic Minerals and Energy's targets after recent deals.
AIM-quoted Lithic (formerly Zambezi Nickel) is in the process of raising £4 million at 6.5p following the £1 million purchase for shares of RRCC, a company controlled by mining entrepreneur Stephen Dattels and others, which holds extensive uranium, nickel, zinc and chrome rights in the relatively under-explored West African republic of Togo. The company is committed to spend £875,000 a year on its Togo licences.
Managing director Jim Kerr says the fundraising has been well received and points to encouraging nickel, zinc and chrome indications on RRCC's Pagala licence. The company's uranium prospect is at Niamtougou in northern Togo, where Germany's Uranertzbergau explored in the 1960s and 1970s and then claimed some 660,000 lbs U308 at 500 to 1,500 parts per million.
Lithic, whose strengthened board is now chaired by regionally well-connected investment banker Iain Rawlinson, has a 6,800 sq km uranium joint venture in mining-friendly Zambia with fellow AIM counter Zambezi Resources. The Bermuda-registered company, which lost £588,212 in the six months to September, is also involved in Zambia's Mitaba Hills nickel project, where inital leaching results have been 'highly encouraging'.
Kerr says he is particularly intrigued by Lithic's wholly owned Navita nickel project in Mozambique, where mining giant BHP Billiton has a clawback deal if the resource exceeds 200,000 tonnes. Lithic shares, which hit 19.25p last year, plunged to 3.5p in January, but have since rallied to 7p, valuing the company at £5.3 million and offering further recovery prospects for the strong nerved.
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