Joint Venture

RNS Number : 8639B

Eastinco Mining and Exploration PLC

15 June 2021

 

15 June 2021

Eastinco Mining and Exploration plc

("Eastinco" or the "Company")

New Joint Venture for Critical Metals in Southern Rwanda

Eastinco Mining and Exploration PLC ("EME" or the "Company") is pleased to announce it has agreed terms and formally signed a new Joint Venture Agreement ("JV" or "Agreement") with a Rwandan entity ("JV Partner") to explore and develop mineral opportunities over an area covering 2,750 hectares in southern Rwanda on which the JV Partner holds a license for the exploration and development of tantalum, niobium, tin and tungsten metal resources.

Under the terms of the Agreement, Eastinco will incorporate a new JV Company, Kinunga Mining Limited ("KML" or "JVCo"), in Rwanda and hold 70% of the issued share capital in Kinunga, with the JV Partner holding 30% as a free-carried interest and entitled to Board representation on the new JV Company.

Charles Bray, Chairman stated "I am absolutely delighted to report on the formation of Kinunga Mining Limited and our new partnership in Rwanda. This transaction dramatically expands our portfolio and strengthens our exploration holdings in an area with tremendous potential to greater than 3,150 hectares. It was a priority to obtain additional exposure to an area where we believe there exists strong potential for economic discovery of these important and valuable critical metals and our CEO, Simon Rollason and the team deserve praise for this accomplishment. This joint venture transaction marks another step towards our goal of building a metal exploration and development company. We will continue to seek to broaden our exposure to critical minerals to reap the corresponding positive benefits to all stakeholders. We look forward to updating our shareholders in due course with additional strategic developments relating to our plans".

The licence area lies in the Huye and Nyanza Districts, approximately 65 km southwest of the Rwandan capital city of Kigali, with the Mineral Exploration Licence awarded to the JV Partner on 15 March 2021 and valid for an initial period of 4 years. The licence with be transferred into KML upon its incorporation. This licence has a contiguous western licence boundary with Eastinco's existing Huye joint venture, and will form a significant hub for southern exploration activities where onsite accommodation, offices and storage to facilitate the exploration of these projects can be established.

The licence area has encouraging elements of an existing pegmatite swarm, with two identified occurrences readily available for immediate geological prospecting and evaluation. The main occurrence represents an approximately 30 m wide, partially artisanally-mined and kaolinised pegmatite that strikes along an entire NW-SE trending ridgeline with a minimum extension of 650 m. Additional extensions of at least 150 m to the NW of the ridgeline have been confirmed during a due diligence site visit with an independent geologist. A second occurrence is an E-W trending, 5-10 m wide pegmatite which is currently less well understood, occurring in a structurally complex setting. However, an existing exploration trench at this occurrence, together with artisanal workings prove sufficient upside exploration potential exists, particularly considering possible extensions (artisanal workings) to the NE.

The known pegmatites form an encouraging exploration target with considerable upside exploration potential if the tantalum grade distribution along the strike and depth extensions can be proven. If so, then EME's landholding in the Huye District will comprise a significant new pegmatite field in Rwanda. Further prospecting is planned over the entire licence area to potentially identify additional mineralised targets.

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

The Directors take responsibility for this announcement.

Enquiries:

For further information, please visit http://www.eastinco.com/ or contact:

Eastinco Mining & Exploration Plc:

Charles Bray, Executive Chairman - [e-mail]

AQSE Growth Market Corporate Adviser:

Novum Securities Limited

David Coffman / Lucy Bowden

Tel: [phone]

 

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