Argentina Lithium & Energy has signed agreements to earn a 100% interest in two new mining concessions on salars in north-western Argentina, from local vendors.
Under the agreements, Argentina Lithium will acquire the 1,456ha Don Fermin property near Salar de Rincon by making a total cash payment of $2.75m over a period of 18 months.
This includes a $250,000 initial non-reimbursable payment.
Argentina Lithium expects the Fermin property to increase the Rincon West project’s total area to 5198.8ha.
The vendor will retain a 1.5% net smelter royalty (NSR) on the property.
Furthermore, Argentina Lithium will acquire the 789ha Lexi-30 property to increase the area at its Antofalla North Project by paying $425,000 in tranches.
The vendor will retain a 2% NSR on the Lexi-30 property.
In a press statement, Argentina Lithium said: “In the instance that the vendor wishes to transfer or sell the NSR, the company has the right to match the terms of NSR transference or sale.”
Argentina Lithium CEO Nikolaos Cacos said: “We continue to emphasise accretion of prospective resource properties to our first-tier projects at Rincon and Antofalla North.
“These new areas will be incorporated into our exploration programmes, and we are planning to deploy advanced geophysics to confirm the presence of brine aquifers, followed by drilling and pump tests to evaluate their potential for hosting lithium in brines.
“Our financing agreement with Stellantis, announced on 27 September, places us in a strong position to acquire and fully explore highly prospective salar properties as they become available.”
Source: Mining Technology