Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) said it has expanded its footprint at the Pocitos project in Salta province to more than 26,000 hectares (Ha) by striking three cash and share option deals with local vendors.
"Pocitos, one of the largest salars within Argentina's Lithium Triangle, remains a key under-explored salar in Salta," Nikolaos Cacos, the CEO of the company told investors in a statement. "With these new acquisitions, we are now the largest holder of claims in this very prospective basin."
Following a January 3 , 2022, agreement, Argentina Lithium said it can acquire a 100% interest in the 1,602 Ha 'El Pidio GIII' property in the southeast of the Pocitos basin by paying US$165,000 in cash over three years, including a mandatory US$30,000 over the first 18 months.
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In addition, the company will issue 25,000 shares to the vendor on signing, with shares worth C$70,000 issued over the subsequent three years, including mandatory issuances valued at C$25,000 over the first 18 months.
Another deal struck on January 3 sees the firm able to buy a 100% interest in the Aguamarga 11 and Aguamarga 16 properties, totaling 7,000 Ha in the east flank of the Pocitos basin. Terms include US$1.89 million in cash payments over three years, including a mandatory US$105,000 over the first 12 months.
In addition, 168,000 shares of Argentina are to be issued to the vendor on signing, with further issuances valued at C$651,000 over the subsequent three years, including a mandatory issue worth C$126,000 after 12 months.
The third agreement dated January 6 gives Argentina Lithium the option to earn a 100% interest in five (Ramos) properties for around 1,762 Ha.
The company must make payments totaling US$150,000 in the first year, followed by US$550,000 two years after signing.
The new properties are believed to have had little prior exploration and no drilling, noted the company.
The Pocitos Salar sits around 100 kilometres (km) west of the town of San Antonio de los Cobres and its current surface expression is around 57 km north-south, and approximately 10 km east-west.
The salt pan here is almost completely flat with portions of the older salar surface covered by talus and alluvial fan.
The Provincial Route 17 and the natural gas pipeline-fed industrial park at the settlement of Pocitos lie 17 km to the east.
Contact the author at giles@proactiveinvestors.com