Credit: Sandawana Mines via LinkedIn

Cluff Africa Ltd. signed a non-binding agreement with Zimbabwe’s sovereign wealth fund to develop a lithium mine in the southern African country.

Cluff will be assigned a 45% share of licenses at Sandawana, founder Algy Cluff said in an emailed statement, without disclosing financial terms.

Zimbabwe is seeking to attract investors after lithium prices steadied following a boom-to-bust period that left an array of stalled projects, scrapped deals and production cuts. State miner Kuvimba Resources Ltd. has said it’s identified a lithium ore resource of 38 million tons at Sandawana in the country’s south.

“We can now begin to develop what we believe to be a world-class, high-grade lithium resource,” Cluff said. The company will start a drilling program as soon as it has signed a final agreement with the wealth fund, it said, without giving a timeframe.

Industry veteran Algy Cluff has previously invested in Zimbabwe’s gold sector, but is best known for his North Sea oil and gas company Cluff Natural Resources Plc — now Deltic Energy Plc.

Zimbabwe’s wealth fund also holds gold, nickel and platinum mines. Calls to the fund went unanswered.

(By Godfrey Marawanyika)

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