Argentina Lithium & Energy Corp. (TSXV: LIT) (FSE: OAY3) (OTC: PNXLF), (“Argentina Lithium” or the “Company”) is pleased to announce that it has entered into option agreements with local vendors to earn a 100% interest in two new mining concessions on salars in northwestern Argentina. The Don Fermin property option (“Don Fermin”) adds 1456 hectares to the Company’s holdings at Salar de Rincon, bringing the total Rincon West Project area to 5198.8 hectares. The Lexi-30 property option (“Lexi”) adds 789 hectares to the Company’s Antofalla North Project, increasing the holdings controlled by the Company to 16,619.5 hectares.
Nikolaos Cacos, CEO of Argentina Lithium stated “We continue to emphasize 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 September 27th, places us in a strong position to acquire and fully explore highly prospective salar properties as they come available.”
Don Fermin is a mining concession granted by the mining authority of Salta Province, located on the eastern flank of the Salar de Rincon, approximately 19 km east of the Company’s main Rincon West property block (See Map 1). The property has not received significant exploration work previously. It is located adjacent to Rio Tinto’s Rincon Project and 1.1 km distance northeast of Argosy Minerals’ Rincon Project.
Lexi-30 is a mining concession granted by the mining authority of Catamarca Province, located on the west side of the Salar de Antofalla, adjacent to the Company’s existing Antofalla North property block (See Map 2). The property has been the subject of TEM surveys in the past but has not previously been drilled. It is located approximately 1.1 km northwest of Albemarle Corporation’s Antofalla Project.
Terms of the option include cash payments totaling US$2,750,000 over 18 months, including an initial non-reimbursable payment of US$250,000. The Company can advance the dates of the subsequent four payments at its discretion. The vendor retains a 1.5% Net Smelter Royalty (“NSR”) which can be repurchased for US$4M.
Terms of the option specify two cash payments totaling US$425,000, including a non-reimbursable initial payment of US$50,000, and an optional final payment of US$ 375,000, payable at up to 12 months. The vendor retains a 2% Net Smelter Royalty (“NSR”). 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.
