Condor Energies Inc., a Canadian-based energy transition company with activities in Turkiye and Kazakhstan, has disclosed that it has entered into a legally binding sale and purchase agreement with a state-owned entity to acquire a 95% working interest in a mining license in Kazakhstan.
According to the Ministry of Geology of the Kazakh Republic, a prior well drilled in the Lithium License for hydrocarbon exploration confronted and tested lithium brine deposits with lithium concentrations of up to 130 mg/l.
Condor and the state-owned organization have established a partnership company to hold and manage the lithium license. According to the partnership’s terms, Condor, which has a 95% working interest, will manage and pay for all activities covered by the lithium license while the other party retains a 5% carried working interest.
The transaction is subject to customary Government of Kazakhstan approvals and fulfillment of a few standard commercial requirements for transactions of this kind. The deal is anticipated to close in the first quarter of 2023.
The six-year Lithium License, which grants subsurface exploration rights for solid minerals on a continuous 68 km2 area, was assigned to the state-owned entity on April 3rd, 2019. In the Lithium License area, a well drilled in 1975 had lithium levels tested in Devonian- and Carboniferous-aged intervals.
According to wireline logs, the Devonian sand interval was tested for 70 m, and the Carboniferous sand interval was tested for 118 m.
There is an additional 863 m of lithium brine potential in the unexplored Devonian and Carboniferous sand intervals.
Condor intends to conduct preliminary engineering for the production facilities during 2023, drill and test two wells to affirm the lateral extension and concentrations of the brine deposits, and create a report that complies with National Instrument 43-101 regarding mineral resources or mineral reserves.
Condor plans to use closed-looped Direct Lithium Extraction (DLE) technologies to produce the lithium. Condor anticipates having a significantly smaller environmental impact than current lithium production operations because the lithium is already in brine solution and because existing DLE production technologies will be used.
Additionally, Condor is considering building a solar power generating project to support the project’s long-term growth to achieve net-zero emissions.
Consistent with our focus to actively pursue opportunities in energy transition, we are very excited to add the lithium mining license to our energies portfolio while continuing to advance our other initiatives.
Don Streu, President and Chief Executive Officer, Condor Energies Inc.
Streu added, “The lithium grades already tested are comparable to projects being developed in Western Canada, while this license also benefits from having both material untested intervals that could provide further upside along with its proximity to European and Asian markets. Asian companies make up over 90% of the current global electric vehicle battery manufacturing.”
“Given our extensive experience and expertise operating in Kazakhstan, we are well-positioned to develop and monetize this clean energy metals deposit. It is important to note that Kazakhstan has maintained its economic and political independence through a balance of neutrality and support for international norms, with major North American and European companies continuing their mineral and energy resource developments,” stated Streu.
Condor is not treating the historical estimate as current mineral resources or mineral reserves since more drilling and testing are required, and a qualified individual has not completed enough research to categorize the historical estimates as current mineral resources or mineral reserves.
It is unknown whether additional drilling will lead to the area being identified as a mineral resource or reserve.