CGRA, an US company investing in sports and mining industries, has obtained seven prospecting licences from the Ministry of Minerals and the Mining Commission of Tanzania.
These licences form part of the 54 individual land tenements it acquired earlier this year.
CGRA made the acquisitions after evidence-based research that indicated the presence of significant lithium deposits on the tenements.
The licences secured are valid for a period of four years, cover a total area of 189.3km² and cover exploration of potential lithium reserves.
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By GlobalData
The granting of the licences validates the company’s initial surveys but also offers it the required legal and regulatory approval to continue with exploration at the sites for the next four years.
CGRA also expects to secure licences for other tenements in the coming weeks.
With the licences, it will explore for metallic minerals, mainly lithium, within the Dodoma Urban area in the country’s central Dodoma region. The region is reputed to have historical occurrences of lithium deposits.
It will undertake detailed exploration and potential extraction of the lithium minerals. The tenements are located across several districts including Hombolo, Kongwa, Chamwino and Mohanga.
GRA chairman Nicolas Link said: “This marks completion of the pre-discovery phase for our company’s lithium mining project, with transition into the value-enhancing discovery phase already under way.
“This critical juncture signifies a shift from initial exploratory activities such as securing necessary prospecting licences and identifying potential mining locations, to intensive exploration efforts aimed at accurately locating and quantifying lithium deposits.
“For our shareholders, this progression represents a significant reduction in investment risks, as it brings the project closer to the potential extraction and commercialisation of lithium and significantly increases CGRA’s asset value through these potentially lithium rich deposits.”
Furthermore, the company established the L Company, a local subsidiary to handle joint venture agreements.
It will help the company maintain a 75% stake in the individual tenements. The remaining 25% stake must be retained by local landowners as per Tanzanian law.
Earlier this year, Reuters reported that the Tanzanian Government entered agreements worth $667m with three Australian companies: Evolution Energy Minerals, Ecograf and Peak Rare Earths.
The agreements were part of the country’s efforts to develop rare earth and graphite projects.
