UK-based mineral resources investment company Cluff Africa has signed a term sheet with Zimbabwe sovereign wealth fund, Mutapa Investment Fund, to acquire 45% in the Sandawana mining permits. This agreement marks the conclusion of a due diligence process.

Cluff Africa plans to launch a reverse circulation drilling programme immediately following the final agreement with Mutapa, aiming to define an inferred resource.

“We are pleased to have reached this pivotal point, from which we can now begin to develop what we believe to be a world-class, high-grade lithium resource, alongside our partner Mutapa,” said Cluff Africa chairperson and CE Algy Cluff.

“Together, we can leverage our complementary strengths, resources and expertise to achieve this shared goal and deliver enhanced value of this particularly exciting asset.

“We look forward to progressing the exploration programme, and unlocking significant value in this highly prospective mining region,” he said.

Cluff Africa has a longstanding history in Zimbabwe, having first invested in the country shortly after its independence in 1980. The company discovered and developed the Freda Rebecca gold mine, which continues to produce gold four decades later.

Algy Cluff was invited by Zimbabwe President Emmerson Mnangagwa in London on May 5 to reinvest in Zimbabwe.

“I would like to extend my thanks to [Mutapa Investment Fund CIO] Mr Simba Chinyemba and his staff for their professional conduct and collaboration in the negotiation process. The efficiency of the process has re-affirmed our belief in the durability and value of this partnership,” said Cluff.

He also thanked Ambassador of Zimbabwe to the UK Christian Katsande and his staff, and Ambassador of the UK to Zimbabwe Pete Vowles and his staff for their advice and support.