AustChina Holdings secures exclusive option for Chenene Lithium Project acquisition

AustChina Holdings Limited (ASX: $AUH) has signed a Binding Heads of Agreement with Cassius Mining Limited (ASX: $CMD) for an exclusive option to acquire 100% interest in the Chenene Lithium Project in central Tanzania. The non-refundable option fee of $100,000 provides the exclusive right to acquire the project, which comprises four contiguous prospecting licenses for lithium covering 300km2. The acquisition is subject to satisfactory due diligence and is expected to enhance the company's exploration portfolio.

Executive Commentary on Chenene Lithium Project Acquisition

The Chief Executive Officer, Andrew Fogg, stated, 'The Acquisition of the Chenene Lithium Project represents a substantial enhancement to our current exploration portfolio, presenting an opportunity to generate significant shareholder value in line with the Company's ongoing mineral exploration efforts and stated objectives. Additionally, it is expected that the transaction will attract an additional class of investors who are seeking exposure to the junior lithium exploration market.'

Summary of AustChina Holdings' Chenene Lithium Project Acquisition

AustChina Holdings' acquisition of the Chenene Lithium Project in Tanzania through a binding agreement with Cassius Mining Limited is a strategic move to diversify its asset portfolio and gain exposure to lithium assets. The project comprises four prospecting licenses and presents two prime exploration targets with significant potential. The company plans to conduct due diligence activities, including trenching and drilling, with an estimated expenditure of approximately $150,000 over the next 12 months. The acquisition is expected to attract new investors and aligns with the company's business model of remaining a junior explorer within the energy and resources sector while responding to changing market conditions. The company's commitment to retaining and allocating funds for the exploration and development of the Blackall Coal Project demonstrates its continued focus on existing operations alongside the proposed activities at the Chenene Lithium Project.