Lithium Energy Ltd (ASX:LEL) has taken a step forward in securing environmental impact assessment (EIA) approvals for the Solaroz Lithium Brine Project in Argentina, having received said approvals for the Mario Angel and Payo concessions.
The company is still awaiting similar approvals for the ‘Central Block’ (comprising Chico I, V and VI, Payo 2 South and Silvia Irene) and ‘Northern Block’ (comprising Payo 1 and Payo 2 North) concessions.
The Central and Northern blocks, covering 10,666 hectares, hold the majority of the existing lithium resource at Solaroz, the target of the next phase of exploration activities.
Solaroz sale agreement
LEL recently entered into a sale agreement with CNGR Netherlands New Energy Technology B.V. (CNNET) for the sale of the whole of Lithium Energy’s interest in Solaroz in return for US$63 million in cash consideration.
Should shareholder approval for the amended sale be granted at a general meeting on January 15, 2025, CNNET will likely pursue the next phase of exploration and evaluation at Solaroz.
The works would be funded by a US$15 million funding mechanism agreed to be provided by CNNET.
At present, the Mario Angel and Payo concessions where EIA approvals have been received, are available for exploration activities while the Central and Northern blocks activities will be delayed until EIA approvals are received.