Montero Mining and Exploration Ltd (CVE:MON) told investors it had staked a potential new lithium discovery in the Atacama region of Chile.
Under the agreement with a private geological consortium, the company has 15 months to make application for the prospective target areas, and once awarded, complete a due diligence sampling program.
"Montero is pleased to announce an agreement that targets a potentially new discovery for lithium mineralization located in the Atacama of Chile," said Dr Tony Harwood, president and CEO of Montero.
"Chile is one of the foremost mining jurisdictions and a major source of global lithium supply.
"Montero has made application over 13,800 hectares in the Atacama and is waiting for the award of the licenses when further updates will be provided."
Upon successful granting of exploration licenses and satisfactory due diligence, the consortium (or founders) will be granted a 1.5% net smelter royalty (NSR) and $100,000 shares in Montero at the market value at the time.
Once Montero is confident ore can be mined and processed economically the founders shall be granted a further $600,000 of Montero shares.
Montero has applied for more than 13,800 hectares of contiguous ground in the Atacama covering one of the target areas defined by preliminary reconnaissance sampling.
The exploration licenses are expected to be awarded in November.
Montero shares are unchanged at $0.175.
Giles Gwinnett is at [email protected]