Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQB:PNXLF) announced that it has entered into two new option agreements at lithium salars in Argentina.
The first involves a local vendor to earn a 100% interest in four contiguous mine concessions totalling 791.3 hectares at the Salar de Rincon (Paso de Sico option), while the other option agreement is with a second local vendor to earn a 100% interest in a single mine concession measuring 843.5 hectares at the Salar de Antofalla (Volcan option).
“The Rincon and Antofalla salars have been our focus for property acquisitions, for their potential for high-grade lithium resources and their favorable locations,” Argentina Lithium & Energy CEO Nikolaos Cacos said in a statement.
READ: Argentina Lithium & Energy reveals positive lithium results from the second hole at its Rincon West project in Argentina
“Each of these new properties border landmark projects operated by major producers, where large resources have already been defined,” Cacos added.
Argentina Lithium noted its new properties represent significant increases to the resource potential for the company’s Rincon West and Antofalla North projects.
It added that the exploration team will now incorporate the new areas into its ongoing and near-term exploration programs.
Terms of the Paso de Sico option include cash payments totalling US$1.5 million paid over two years, including obligatory payment commitments totalling US$300,000 in the first six months.
The option grants a 3% net smelter return (NSR) to the vendor, which can be purchased by the company for an additional US$1.5 million, and requires a total of US$2.3 million of exploration and development expenditures over a three-year period.
Terms of the Volcan option, meanwhile, include cash payments totalling US$590,000 paid over three years, including the obligatory payment of US$40,000 at the time of signing.
The option grants a 1% NSR to the vendor, which can be purchased by the company for an additional US$1.3 million.
Argentina Lithium said its Rincon West project now totals 3,742.8 hectares with the Paso de Sico acquisition, while the company now controls 15,830.5 hectares at its Antofalla North project for exploration and development with the Volcan acquisition.
Argentina Lithium & Energy 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 company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
Contact Sean at sean@proactiveinvestors.com