Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) told investors it has strengthened its position in northwestern Argentina after entering option agreements with local vendors to earn a 100% interest in two new mining concessions.
The company said the option on the Don Fermin property adds 1,456 hectares to its holdings at Salar de Rincon, bringing the Rincon West Project area to 5,198.8 hectares. The property, which has not received significant exploration work, is adjacent to Rio Tinto’s Rincon Project and 1.1 kilometers (km)northeast of Argosy Minerals’ Rincon Project.
At its Antofallo North project, it said the Lexi-30 property option adds 789 hectares, increasing its holdings to 16,619.5 hectares. Argentina Lithium noted the property has been the subject of TEM (transient electromagnetic) surveys in the past but has not previously been drilled. It is located approximately 1.1 km northwest of Albemarle Corporation (NYSE:ALB)'s Antofalla Project.
“We continue to emphasize accretion of prospective resource properties to our first-tier projects at Rincon and Antofalla North,” commented Argentina Lithium CEO Nikolaos Cacos.
“These new areas will be incorporated into our exploration programmes, and we are planning to deploy advanced geophysics to confirm the presence of brine aquifers followed by drilling and pump tests to evaluate their potential for hosting lithium in brines.
The option agreement terms for the Don Fermin property include cash payments totaling US$2.75 million in 18 months, including an initial non-reimbursable payment of US$250,000. The vendor retains a 1.5% Net Smelter Royalty (NSR) which can be repurchased for US$4 million.
The terms of the option agreement for the Lexi property specify two cash payments totaling US$425,000, including a non-reimbursable initial payment of US$50,000, and an optional final payment of US$375,000, payable at up to 12 months. The vendor retains a 2% NSR. If the vendor wishes to transfer or sell the NSR, Argentina Lithium has the right to match the terms of NSR transference or sale.
“Our financing agreement with Stellantis, announced on September 27th, places us in a strong position to acquire and fully explore highly prospective salar properties as they come available,” Cacos added.
Contact the author at stephen.gunnion@proactiveinvestors.com