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Highlights

  • Fortuna Metals to acquire 100% of Mkanda and Kampini Projects in Malawi, covering 658 sq km in a rutile prospective region.

  • A two-phase exploration program is planned, starting with soil sampling and hand auger drilling, followed by geophysical studies and expanded drilling.

  • Tom Langley appointed as CEO to lead exploration and development initiatives following the acquisition

Fortuna Metals Limited (ASX:FUN) has announced that it has entered into a binding agreement to acquire 100% of the issued capital of a holding company with interests in two granted exploration licences. The licences form the Mkanda and Kampini Projects, which span 658 square kilometres in Malawi, Africa.

The projects are located within the emerging rutile province and sit adjacent to Sovereign Metals Limited’s (ASX:SVM) tier-one Kasiya rutile and graphite deposit. Kasiya is recognised as the world’s largest rutile and second-largest flake graphite deposit. Rutile, the purest natural mineral form of titanium, is an important raw material for applications in aerospace, defence, robotics, and advanced manufacturing.

Terms of the Acquisition

Under the agreement, Fortuna will issue 55,000,000 fully paid ordinary shares and 55,000,000 performance shares to the vendors, alongside a cash payment of AUD 100,000 to reimburse project-related expenses. The projects carry an existing 1.5% gross revenue royalty.

The performance shares are divided into two classes:

  • Class A: Convert into ordinary shares upon announcement of a minimum of five drilling intersections averaging at least 1.25% RutEq over eight metres within four years.

  • Class B: Convert upon delineation of a JORC-compliant inferred resource of at least 100 million tonnes at or above 1.25% RutEq within four years.

The consideration securities will be subject to escrow periods of six and twelve months. Completion of the acquisition remains subject to conditions including due diligence, regulatory approvals, ASX confirmation of performance share terms, and shareholder approval for the issuance of the securities. Completion is targeted for early November 2025.

Exploration Strategy

Fortuna has outlined a two-phase exploration program over the next 12 months. The initial phase will include soil sampling and hand auger drilling, with approximately 250 soil samples and 64 drill holes planned. Phase two will build upon these results through the purchase and reprocessing of geophysical data from the Malawian government, review of historical exploration, and expanded drilling activities.

The exploration strategy is designed to establish early resource potential across the Mkanda and Kampini areas, which share similar geological characteristics with the Kasiya deposit.

Appointment of New CEO

In conjunction with the acquisition, Fortuna announced the appointment of Tom Langley as Chief Executive Officer, effective immediately. Mr. Langley holds degrees in geology from the University of Western Australia and the University of Tasmania (CODES). He has held roles with BHP Nickel West, Northern Star Resources, and the Creasy Group, and is a member of MAusIMM, MAICD, and MAIG.

Mr. Langley brings experience in exploration and mining geology, with a background in resource definition, project evaluation, and grassroots exploration across multiple commodities.