Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) has announced that it has entered into an option agreement with a local vendor to earn a 100% interest in three granted mine concession properties totaling 5,411 hectares in the Salar de Antofalla in Catamarca Province, Argentina.
Argentina Lithium's Antofalla North project includes both 100% held and optioned properties. With this new option, the company now controls 14,987 hectares of mining leases in the salt flat, distributed between the adjacent provinces of Salta and Catamarca.
"Our team has identified the Antofalla Salar as one of the most prospective undeveloped lithium brine basins in Argentina, and we are aggressively consolidating our land position in Antofalla North,” Nikolaos Cacos, President and CEO of Argentina Lithium said in a statement.
“With these new acquisitions, Argentina Lithium's properties extend from a half kilometre north of Albemarle concessions, towards the north for approximately 27 kilometres (km). We have begun the permitting process, in order to explore this salt flat with advanced geophysical imaging and drill testing," Cacos added.
READ: Argentina Lithium & Energy kicks off geophysics program its Rincon West project in Argentina
Located in the famed 'Lithium Triangle', the geological environment at the Salar de Antofalla is similar to other salt flats in the region where lithium and potash are found. The project is located about 25km west of Argentina's largest lithium-producing operation at Salar de Hombre Muerto. The Salar de Antofalla is over 130km long and varies between 5km and 10km in width, with reported basin depths exceeding 500 metres (m).
The southern boundary of the Antofalla North project is situated approximately 500m north of properties controlled by global lithium producer Albemarle Inc, Argentina Lithium said, noting that Albemarle has stated that it believes the lithium resource on its property has the potential to rank amongst the largest in Argentina.
“There has been no significant historical exploration work on the new optioned properties. The option provides the company with coverage to protect its mineral rights in the area of the provincial boundary between Salta and Catamarca and extend its holdings 4.6km southwards to within 500 metres of Albemarle's property boundary; a portion of the northern part of the optioned properties may overlap a third party concession in the provincial boundary area,” the company added.
Terms of the option include cash payments totaling US$2.8 million over four years, including mandatory commitments totaling US$180,000 in the first twelve months. The option also includes annual exploration expenditure commitments of $500,000 in the first year, followed by $1.5 million in the second, $2.0 million in the third and $3.0 million in the fourth year.
The vendor retains a 2% net smelter royalty, which can be repurchased for US$3 million, the company said.
Argentina Lithium is focused on acquiring high-quality lithium projects in Argentina, and advancing them towards production in order 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 Lithium Triangle.
Contact the author at jon.hopkins@proactiveinvestors.com