Marula Mining, through its subsidiary Southern African Lithium and Tantalum Mining, has entered an agreement to acquire a lithium, tungsten and tantalum project in South Africa.

This deal will see the acquisition of 100% of South African mining and exploration company Northern Cape Lithium and Tungsten (NCLT).

Under the deal’s commercial terms, Marula Mining will make a cash payment of approximately £125,000 (Ks16.37m) to the existing shareholders of NCLT, and further payments totalling £1.25m on or before 31 July 2024 and 30 September 2024.

The agreement includes options for cash or share settlements.

Spanning 15,000 hectares of the Vioolsdrift Farm, the newly acquired NCLT Project is adjacent to Marula Mining’s Blesberg lithium and tantalum mine.

The NCLT Project comprises more than 16 known tungsten deposits and historical high-grade mining operations.

The project also includes the Spodumene Kop II Pegmatite and the Groendoorn Pegmatite Field, both of which have been mined in the past for various minerals.

Marula Mining’s due diligence has confirmed the high-grade nature of the tungsten and tantalum mineralisation at the NCLT Project.

Marula Mining CEO Jason Brewer said: “The NCLT Project comprises a highly prospective and extensive licence area for a number of minerals, most especially a strong portfolio of tungsten assets including the potentially shallow open castable Kaalbeen, Koubank and Isis operation.

“Similarly, the pegmatites at Spodumene Kop II and Groendoorn have good potential for tantalite, spodumene and industrial minerals.

“This acquisition not only expands Marula’s portfolio and geographic footprint in South Africa, but also provides an opportunity to build on infrastructure at Blesberg and position ourselves as a fast emerging and growth-focused company in the South African mining landscape.”

Earlier this year, Marula Mining announced an investment to acquire stake in the Larisoro manganese mine in northern Kenya.