Ann: Kanuka Lithium Project - JV Agreement Executed, page-2

here we go guys & girls


27 March 2018 ASX Announcements Office 152–158 St Georges Terrace Perth WA 6000 Australia KANUKA LITHIUM PRODUCTION PROJECT – JV AGREEMENT EXECUTED ▪ Formal Joint Venture agreement executed for Kanuka Lithium Production Project. ▪ Lithium exploration activities to immediately commence under the direction of the Company’s Head of Exploration - James Sullivan; aided by the Company’s local geologists. ▪ Drilling contract to now be finalized and executed for initial 50-hole, 3,000m RC drilling program with a further 1,000m diamond drilling program planned. ▪ Initial exploration and drill program will immediately target pegmatites that have been exposed by current and historic mining activities, to confirm the extent of lithium mineralization and define the depth extensions and grade of lithium mineralisation. ▪ Logistics and preparatory works for commencement of the drilling program well advanced allowing immediate mobilization by the drilling contractor. Force Commodities Ltd (Force or the Company) (ASX Code: 4CE) is pleased to confirm that the Joint Venture Agreement and associated documentation in respect to the Kanuka Lithium Production Project, located in in Tanganyika Province in the south east of the Democratic Republic of Congo (DRC), has been executed in line with the key terms previously advised. The Company will now proceed to complete settlement of the Joint Venture with the incorporation of the Joint Venture company and the issue by Force of the first tranche of equity consideration to MMR. This is due to occur within the next 5 business days. In addition, the Company will now immediately commence its planned initial exploration program activities and finalise and execute the drilling contract for an initial 50-hole, 3,000m RC drilling program and a subsequent 1,000m diamond drilling program. The Kanuka Lithium Project Joint Venture, held 51% by Force and 49% by Kanuka Mining Company SARL (KANUKA), a wholly owned subsidiary of Mining Mineral Resources SPRL (MMR), is focussed on two contiguous licenses: granted Mining License PE13082 and Exploration License PR4100. Current and historic tin and tantalum mining in these license areas has exposed a number of pegmatites, with one identified in the current main mining area being in excess of 3kms long and greater than 200 metres in width and where Force has already confirmed the existence of spodumene based lithium mineralisation from technical work already completed. 2 This Kanuka Lithium Project Joint Venture includes licenses that cover an area of approx. 194km2 and which are located 20km east of the Company’s existing Kitotolo Lithium Project, which is a joint venture with La Congolaise d’Exploitation Miniere (Cominiere SA). The licenses are also immediately south (approx. 4km from the license boundaries) of AVZ Mineral’s (ASX: AVZ) Manono Lithium Project. The Company and its joint venture partner KANUKA and MMR, have a clearly defined strategy outlined for the Kanuka Lithium Production Joint Venture, with the immediate focus to now commence broad lithium focused exploration activities and finalise contractual arrangements with drilling contractors to enable the initial drilling program to begin. It is the intent of the Kanuka Lithium Production Joint Venture to accelerate the development of a commercial lithium mining and processing operation, given the established infrastructure already in place at Kanuka, which includes the established tin and tantalum mining and processing operation, the power, mine camp, workshops, dedicated airstrip and offices. In addition to the established mine infrastructure at Kanuka, where MMR has been conducting conventional open pit mining operations since 2012 and producing tin and tantalum concentrates that MMR exports to the international market, it is expected that the Kanuka Lithium Production Joint Venture will also benefit from MMR’s position within the broader Vin Mart Group - a diversified mining, metals and trading group that has operated successfully in the DRC since 1997, with existing copper cathode and copper, cobalt, tantalum, tin and tungsten concentrate production from several mines and processing plants. Commenting on the execution of the Kanuka Lithium Project Joint Venture Agreement, Force’s Managing Director Jason Brewer stated: “We are excited to be working with MMR and the Vin Mart Group on the Kanuka Lithium Project Joint Venture. To have cemented this partnership is such a quick timeframe and to be now working with such a very successful, professional and respected company in the DRC, is something we are extremely proud of. Together we have an excellent opportunity to advance the Joint Venture forward and look to deliver on our strategy of establishing a commercial lithium mining and processing operation. To date we have identified extensive pegmatites, at surface and exposed by recent and historical mining activities, and now both parties are keen to commence the Joint Venture exploration activities and commence drilling to confirm the grade and extent of the lithium mineralisation.” Commenting on the execution of the Kanuka Lithium Project Joint Venture Agreement, Vin Mart Group’s Group Executive Advisor and Board of Director of the Joint Venture Company Pawan Burde stated: “We are extremely delighted to partner with Force for lithium exploration and development at MMR’s Kanuka concession. We believe that there is tremendous potential at the Kanuka Lithium Production Project and with Force’s technical, commercial and financial expertise, we believe we will now be able to expedite the development of the project.”