Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) is poised to acquire 100% interests in two prime lithium exploration properties close to infrastructure in Argentina's world renowned 'Lithium Triangle'.
The firm announced a letter of intent with a local vendor to acquire, for cash and shares, the 2,370 hectare (Ha) Rincon West property and the 15,857 Ha Pocitos asset.
"These properties represent prime exploration assets with infrastructure close by and potential for discovery of high-grade lithium brines. Salta is a pro-mining jurisdiction and Argentina Lithium intends to fast-track drilling to evaluate and advance these well-located properties," said Nikolaos Cacos, the CEO of Argentina Lithium.
Rincon West prospect is a single mining concession on the west side of the Rincon Salar and sits close to the railway, and just 17 kilometres from the international road that connects to Chile's ports. The InterAndes power corridor runs within 1km of the Rincon Salar.
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The Pocitos prospect is a group of 11 contiguous concessions on the western side of the Pocitos Salar. The Provincial Route 17 and the natural gas pipeline-fed industrial park at the settlement of Pocitos lie 17 km to the east.
The property has seen modest lithium exploration in the past, including geophysics and surface sampling, with very limited drilling.
Under the terms, Argentina Lithium must issue 750,000 of its shares to the vendor on signing plus $500,000 worth of shares over 12 months and cash payments totaling US$4.2 million over 36 months, limited to only US$1.05 million in the first 18 months - US$800,000 of which are firm commitments over the first year.
The agreement is subject to 10 days due diligence from September 24, 2021, execution of a definitive option agreement and TSX Venture Exchange approval.
Argentina Lithium & Energy is focused on high-quality lithium projects in Argentina, and advancing them towards production to meet the growing global demand from the battery sector.
The management group has a long history of success in the resource sector of Argentina, and has assembled a team of experts to acquire and advance the best lithium properties in the world-renowned Lithium Triangle. The company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
Contact the author at giles@proactiveinvestors.com