Desert Metals (ASX:DM1) has acquired 100% ownership of two key gold and lithium permits in Côte d’Ivoire, consolidating its Adzope Project to 826km² and simplifying its exploration strategy.
- Acquisition of 598km² Agboville permits in Birimian greenstone belt
- Adzope Project expands to three permits covering ~826km²
- Consideration paid via 18.1 million DM1 shares, no cash outlay
- Supersedes prior joint venture requiring staged exploration spend
- Permits prospective for gold, lithium, and rare earth minerals
Full Ownership Streamlines Exploration Strategy
Desert Metals has taken a decisive step to consolidate its ground position in southeastern Côte d’Ivoire by acquiring 100% of two Agboville permits covering 598 square kilometres. This move replaces a previous joint venture arrangement that would have required staged exploration expenditure to earn an 85% interest. Instead, Desert Metals will now hold outright ownership, simplifying its corporate structure and giving it full flexibility to explore, partner, or monetise the enlarged project package.
Strategic Expansion of Adzope Project
The acquisition adds to Desert Metals’ existing Adzope Gold Project, expanding it to three permits totalling approximately 826 square kilometres. The Agboville permits lie within the highly prospective Birimian greenstone belt, a geological formation known for hosting significant gold and lithium mineralisation. Notably, the permits are located just 20 kilometres northwest of the King Kong prospect, where recent drilling has returned impressive gold intercepts including 17 metres at 7.5 grams per tonne.
Lithium Potential Supported by Historical and Recent Discoveries
Historical government sampling in the region has indicated the presence of lithium, beryllium, tantalum, and rare earth elements, although these results remain unverified. The district’s lithium prospectivity was further validated by Atlantic Lithium’s discovery in the adjacent Agboville-Rubino area in 2025, underscoring the potential for multi-commodity exploration in this part of Côte d’Ivoire.
Share-Based Consideration Reflects Efficient Deal Structure
The total consideration for the acquisition is approximately A$145,000, paid entirely through the issue of 18.125 million Desert Metals shares at a deemed price of A$0.008 each. No cash payment is required, and the shares issued will be unrestricted and freely tradeable. This approach preserves the company’s cash reserves while securing full ownership of the permits.
Positioning for Next Exploration Phase
Managing Director Stephen Ross highlighted that outright ownership is a more efficient outcome than the original earn-in structure, providing shareholders with immediate control over the permits. This consolidation positions Desert Metals well to advance exploration efforts and consider potential partnerships or monetisation strategies in one of the most prospective gold and lithium regions of southeastern Côte d’Ivoire.
Bottom Line?
Desert Metals’ full acquisition of the Agboville permits removes joint venture complexities and sets the stage for focused exploration and strategic options in a promising multi-commodity belt.
Questions in the middle?
- When will the pending permit application be granted and how might this affect exploration timelines?
- What are the next exploration activities planned to verify historical lithium and rare earth mineralisation?
- How might Desert Metals leverage its consolidated landholding to attract partners or capital for development?