The current deal ONLY relates to Mining License 223 which covers about 5% of about 200 pegmatites that are 80% owned by AM7 contained within EPL 5047 and EPL 7295. This deal sets up a 20,000 tonne per month gravity separation plant that produces a concentrate containing tantalum, nobium and lithium solely from ML 223. This ML has 10 pegmatites partially explored for a JORC Indicated 1,439Mt and Inferred 1,145Mt. At a process rate of 20,000 tpm that is a LOM of approximately +12.5 years. Updated BFS will have a detailed outline of CAPEX and OPEX related to the 20,000 tpm gravity separation plant operations (with a construction schedule of 12 months).
There are additional deals in the pipeline for offtake agreements with third parties and further potential upgrades from current JV partner. AM7 retains an 80% interest in approximately 200 pegmatites across EPL 5047 and 7295. Upside here is very significant. Current EV of AM7 lithium, tantalum and niobium prospects in Southern Namibia IMHO should be valued at multiples of the current EV. Bitterwasser brines and clays are currently valued at nil, which is mind boggling. ASX market for many minnows is currently in the pits, which produces massive opportunities for smart, informed investors. Good luck to all longs.
AM7 Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
