Australasian Metals Secures Binding Option on Côte d’Ivoire Lithium Assets
Key Takeaways
- Australasian Metals has signed a binding option with Firering Strategic Minerals to acquire 75% of the Atex Lithium-Tantalum Project and 51% of the Alliance Lithium Project in Côte d'Ivoire for a total consideration of A$1.4M plus a A$100,000 option fee.
- Historical diamond drilling at Spodumene Hill has confirmed lithium mineralisation over more than 800m of strike length, with the best intercept returning 67.97m at 1.23% Li₂O including 27m at 2.13% Li₂O.
- A 23-hole RC campaign completed in 2024 expanded known lithium mineralisation by 122%, and multiple additional pegmatite targets outside the Spodumene Hill discovery area remain untested.
- A8G holds a Buyout Option to acquire Firering's remaining JV interest for A$5M plus a 1% net revenue royalty, with the royalty itself buyable for a further A$5M at any time within two years of JV commencement.
- A A$1,000,000 placement at A$0.13 per share, settling on or around 10 September 2026, will part-fund the transaction alongside existing cash reserves of approximately A$2.3M.
Australasian Metals secures binding option over West African lithium projects
Australasian Metals Limited (ASX: A8G) has entered into a Binding Option Agreement with Firering Strategic Minerals plc (AIM: FRG) to acquire majority interests in the Atex Lithium-Tantalum Project and the Alliance Lithium Project in Côte d’Ivoire. The deal provides a low-cost entry into the Baoulé-Mossi domain of the West African Craton, one of West Africa’s most prospective lithium regions.
The option structure requires a A$100,000 option fee for a three-month exclusive period, with a A$1,400,000 purchase consideration payable upon exercise. On completion, A8G would hold up to 75% of the Atex Project and 51% of the Alliance Project, becoming operator of both.
Funding for the transaction will draw on existing cash reserves of approximately A$2.3M, supplemented by a A$1,000,000 placement. The placement involves the issue of 7,693,308 new A8G shares at A$0.13 per share, utilising the company’s existing capacity under ASX Listing Rule 7.1 with no shareholder approval required. Settlement of the placement is expected on or around 10 September 2026.
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Atex drill results demonstrate strong lithium endowment
Previous diamond drilling by Firering at Spodumene Hill, completed in 2022, produced a series of headline intercepts that underpin the project’s lithium potential. Mineralisation has been confirmed over more than 800m of strike length, which remains open along strike and at depth, indicating meaningful exploration and resource growth upside.
A 23-hole Reverse Circulation (RC) campaign completed in 2024, totalling 3,753m, expanded the known lithium mineralisation by 122%. Soil geochemistry and auger drilling have also identified multiple additional pegmatite targets outside the Spodumene Hill discovery area, pointing to potential for a district-scale mineralised system.
The highlighted drill results from historical campaigns are summarised below. Note that all intercepts represent apparent thickness; the relationship between apparent width and true width has not yet been established.
| Hole ID | From (m) | Intercept (m) | Grade (Li₂O%) | Drill Type |
|---|---|---|---|---|
| TVDD0004 | 68.4 | 67.97m | 1.23% (incl. 27m @ 2.13%) | Diamond |
| TVDD0018 | 79.48 | 20.77m | 1.65% (incl. 18m @ 1.85%) | Diamond |
| TVDD0019 | 60.42 | 5.91m | 1.48% | Diamond |
| TVDD0019 | 71.91 | 17.59m | 0.84% | Diamond |
| TVRC0009 | 118 | 13.0m | 0.83% | RC |
Supporting the district-scale case, Desert Metals (ASX: DM1) reported a lepidolite-bearing pegmatite discovery in April 2024 approximately 2km north of the Atex licence boundary, with outcropping spodumene and lepidolite located approximately 1.6km north of the northern edge of the Atex licence. The two licences share a geologically contiguous boundary comprising the north-northeast striking metavolcanics and metasedimentary rocks of the Birimian.
What the geology tells us
The Atex Project sits within the Birimian Supergroup, a sequence of ancient volcanic and sedimentary rocks that host lithium-bearing LCT (lithium-caesium-tantalum) pegmatites across West Africa. At Spodumene Hill, lithium is carried primarily in spodumene and lepidolite minerals within a series of steeply dipping, north-northeast striking pegmatite bodies.
The 2022 diamond drilling campaign focused on the central and southern parts of the licence. The northern portions of the licence, along with additional targets identified through soil geochemistry and auger drilling campaigns conducted in 2023, remain untested, preserving substantial exploration upside.
Managing Director Qingtao Zeng
“Historical drilling at Atex Project has delivered exceptional drill results, and we see significant upside through systematic exploration and resource definition.
This acquisition aligns with our strategy to build a diversified critical minerals portfolio while maintaining disciplined capital capital management…”
What is an LCT pegmatite, and why does it matter for lithium investors?
LCT pegmatites are igneous rock bodies that form during the late stages of magma crystallisation, concentrating lithium, caesium, and tantalum into commercially meaningful grades. At Atex, the primary lithium minerals are spodumene and lepidolite. Spodumene is the most commercially significant of the two: it is a hard rock lithium silicate mineral that can be processed into spodumene concentrate, which in turn feeds the battery-grade lithium hydroxide supply chain.
The West African Craton has emerged as a recognised lithium province, with several projects in the region having attracted significant corporate interest. The announcement cites the following transactions as broad context for the region’s prospectivity:
- Ewoyaa (Ghana) — Atlantic Lithium (AIM: ALL, ASX: A11), currently subject to a recommended scheme of arrangement with Huayou at approximately US$210 million
- Bougouni (Mali) — Kodal Minerals (AIM: KOD), with Hainan Mining acquiring a 51% interest for US$100 million
- Goulamina (Mali) — previously Leo Lithium (ASX: LLL), acquired by Ganfeng Lithium in a transaction valued at over US$850 million
The Atex Project is at an earlier exploration stage than each of these projects. Direct comparisons should be treated with caution given differences in classification, confidence levels, and development status.
For A8G, the significance is the entry point. The company is acquiring a majority interest in an exploration-stage project with material historical drilling, at a cost structure — A$100,000 option fee and A$1.4M consideration — that limits early capital exposure while preserving the upside of systematic exploration.
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Deal structure, pathway to control, and what comes next
The joint venture structure on completion of the transaction is as follows:
Atex Project:
- A8G: 75% (operator)
- Firering: 15% (free carried to final investment decision)
- Existing partner: 10% (unchanged)
Alliance Project:
- A8G: 51% (operator)
- Existing partners: 49% (unchanged)
Firering currently holds an option to acquire an additional 29% of the Alliance licence from the existing partners. This option transfers to A8G at completion. Firering retains the right (but not the obligation) to participate in up to 15% of the Alliance licence (representing approximately 51.7% of the option interest) on the same commercial terms, pricing, and timing as A8G.
A8G also holds a Buyout Option during the free carry period, allowing it to acquire Firering’s remaining joint venture interest for A$5M (payable as a minimum of A$2.5M cash plus A8G shares at the 20-day VWAP) plus a 1% net revenue royalty. A8G has the right to buy out the entire 1% royalty for a further A$5M, exercisable at any time but no later than two years after commencement of the full joint venture agreement.
During the three-month exclusive option period, the company intends to conduct comprehensive due diligence covering site visits to verify historical data, geological mapping, representative sampling, preliminary metallurgical test work, and legal, tenure, financial, and tax diligence. In parallel, A8G intends to commence the public consultation and permitting processes required to support its maiden drilling programme.
The Atex licence (PR-777) covers 134.96km² and is valid to 15 November 2027. The Alliance licence covers 365.27km² and is currently at application stage. No changes to the board or the company name are proposed on completion of the transaction. Upon option exercise, A8G becomes operator, with a maiden drilling programme to follow.
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