- Advance Lithium Corp. (AALI) receives confirmation from Shanta Gold to dilute its ownership to a 10 per cent interest in a joint venture
- It now holds a three per cent uncapped net smelter return royalty (NSR) on three exploration licences in Western Kenya
- Two of the claims are in the Liranda Corridor, one of the regions for high-grade gold
- The third claim is to the north of the corridor and hosts the Rosterman Gold Mine
- Advance Lithium Corp. (AALI) is down 9.09 per cent trading at $0.05 per share as of 1:41 p.m. EST
Advance Lithium Corp. (AALI) has received confirmation from Shanta Gold they have diluted Advance Lithium’s ownership to below 10 per cent.
This is in connection with an option agreement between the two companies
Subsequently, Advance Lithium now holds a three per cent uncapped net smelter return royalty (NSR) on three exploration licences in Western Kenya.
Allan Barry Laboucan, President and CEO of Advance Lithium, commented,
“Now having a royalty on these licences gives us more flexibility to leverage the inherent value in them… It is worth noting that in the past several years the gold royalty business has grown rapidly, yet the supply of royalties is tight”
Two of the claims are located on the Liranda Corridor, a key greenstone belt that is considered one of the most prospective regions for high-grade gold in Africa.
The claims have seen significant historical colonial mining and current artisanal activity. Shanta Gold has the connecting licence where they have published an inferred mineral resource estimate of 1,182,300 ounces at 12.6 grams of gold per tonne.
Additionally, Shanta Gold recently hit bonanza grade drilling results, meaning it has found more than 34 grams of gold per tonne.
Advance Lithium thinks the two claims on which it holds an NSR are highly prospective for the discovery of significant high-grade gold.
The third claim is to the north of the Liranda Corridor and hosts the Rosterman Gold Mine. The mine operated in the late 1950s to the mid-1960s and excavated seven gold-bearing reefs from 23 underground levels.
Advance Lithium Corp. (AALI) is down 9.09 per cent trading at $0.05 per share as of 1:41 p.m. EST.