Fortuna Metals Limited (ASX: FUN), a mineral exploration company focused on identifying and developing resource projects, has announced a binding agreement to acquire 100% of the issued capital of a holding company with interests in the Mkanda and Kampini Projects in Malawi, Africa. The projects, comprising two granted exploration licences covering 658 square kilometres, are considered highly prospective for rutile and graphite. This strategic move positions Fortuna Metals in the emerging rutile province adjacent to Sovereign Metals Limited’s Kasiya deposit.
The Mkanda and Kampini Projects are located south of Sovereign Metals’ Kasiya rutile project. Fortuna Metals anticipates that exploration over the next 12 months will include soil sampling of target areas and hand auger drilling. A second phase will involve reprocessing existing geophysical data and assessing past exploration reports, with the goal of designing a larger drilling program based on initial results. The company expects to complete approximately 250 soil samples and 64 hand auger drill holes in the first phase.
In conjunction with the acquisition, Fortuna Metals has appointed Tom Langley as Chief Executive Officer, effective immediately. Mr. Langley brings extensive experience in exploration and mining geology, including overseeing large-scale resource definition drill programs and early-stage project evaluation. Fortuna will issue 55,000,000 fully paid ordinary shares and 55,000,000 performance shares to the holding company shareholders as consideration for the acquisition.
Mr. Langley expressed enthusiasm for leading Fortuna Metals and pursuing a major rutile and graphite discovery in Malawi. Completion of the acquisition is targeted for early November 2025, pending shareholder approvals and satisfaction of customary conditions, including due diligence and regulatory approvals.
