Zeus Resources to acquire high-quality antimony exploration project in Morocco

SYDNEY: Zeus Resources Ltd. (ASX: ZEU) announced Monday that it has entered into an agreement to acquire the Casablanca Antimony Project in central Morocco, a high-potential exploration site targeting antimony mineralization. The acquisition, subject to shareholder approval, includes six exploration licenses covering an area of 79 square kilometers.

The Casablanca Antimony Project, located approximately 42 kilometers northeast of Khouribga and 115 kilometers southeast of Casablanca, has shown promising historical assay results, including rock chip samples with antimony (Sb) grades of up to 61.9%, 44.5%, and 39.4%. The project area features outcropping massive stibnite mineralization and several historical and recent artisanal mine workings.

Zeus Resources, through its wholly owned Moroccan subsidiary, Zeus Morocco Resources Pty Ltd., will acquire the project from Ashgill Morocco Limited, a subsidiary of Ashgill Australia Pty Ltd. Ashgill will provide ongoing in-country support to assist with the exploration program, leveraging its local knowledge and network.

Antimony, a critical and geopolitically sensitive mineral, is essential for various industrial applications, including solar photovoltaics and military supply chains. The global antimony market is currently experiencing significant supply constraints, driven by declining production in China and export restrictions, leading to record-high prices.

Morocco, ranked as the second-best place for mining investment in Africa by the 2023 Fraser Institute Survey, is known for its significant antimony mineralization, particularly in the High Atlas and Anti-Atlas Mountains. The Casablanca Project is situated in the western Meseta region, where antimony deposits are associated with regional faults and shear zones.

The project’s exploration licenses are valid until March 23, 2026, with options to extend for an additional four years. Zeus plans to conduct further exploration, including drilling, which is permitted under the current licenses.

The acquisition agreement includes a cash payment of $25,000 to Ashgill for a 45-day option period, during which Zeus will complete due diligence and obtain necessary regulatory and shareholder approvals. Upon completion, Zeus will issue 62.5 million fully paid ordinary shares to Ashgill, with 50% of the shares escrowed for six months, and 12 million performance rights tied to the project’s exploration success.

Zeus Resources also announced an introducer’s fee agreement with Janus Capital Partners Ltd., which will receive 72.52 million options as part of the transaction, subject to shareholder approval.

The company emphasized that the project’s exploration results to date, including rock chip sampling and stream sediment surveys, support the potential for significant antimony mineralization. Further work, including ground truthing and detailed geochemical analysis, is planned to advance the project.

Zeus Resources’ board has authorized the release of this announcement to the ASX, and the company expects to provide further updates as the project progresses.

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