Argentina Lithium Completes Early Exercise of Property Options at Rincon West and Antofalla North Projects.
Argentina Lithium & Energy Corp. (TSX-V: LIT) (FSE: OAY3) (OTC: PNXLF), (“Argentina Lithium” or the “Company”) is pleased to announce that it has exercised two option agreements to obtain 100% interest in key properties at its Rincon West, Antofalla North, and Pocitos lithium projects, all located in Salta Province, northwest Argentina, within the Lithium Triangle.
The Rincon West/Pocitos option, now exercised, encompasses 2390.5 hectares of properties at the Company’s Rincon West Project, including those on which the successful phase 1 drill program was completed earlier this year. The exercised option also includes 15,857 hectares of properties at the Company’s Pocitos Project, which is currently undergoing a 170 line-km TEM geophysical survey program to map the subsurface for potential future drill targeting.
The exercised Pipo/Alcalina option encompasses 5380.5 hectares of properties at the Company’s Antofalla North Project, for which the Company recently announced accelerated exploration plans for 2024.
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Nikolaos Cacos, CEO of Argentina Lithium stated:Â
Exercising the options at Rincon West and Antofalla North is a key step to advance planning and development of our two core projects.
“Drilling on the optioned property at Rincon West has verified the grade potential of the concentrated lithium aquifer. Drilling is pending at Antofalla North, however our geophysics demonstrates a deep salar basin and we are confident in the prospectivity for lithium brines, so we have set ambitious plans to advance the project. We have funding secured to fully explore these two projects, and our partner, Stellantis, is entirely supportive of our approach.”
The early exercise of both options was completed through the Company’s Argentine subsidiary Argentina Litio y Energia S.A. (“ALE“). Argentina Lithium owns 80.1% of ALE, with 19.9% ownership held by Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V. (“Stellantis“), following the transaction announced on September 27th, 2023 .
Rincon West/Pocitos Option Details
The Rincon West/Pocitos option agreement was announced on September 28, 2021. The option was conditional on cash payments of US$4,200,000 and payment of shares in the Company equivalent to CA$700,000 at the time of issuance, payable over 36 months. The Company had previously made US$1,300,000 in payments towards the option and completed its share issuance requirements and has now paid the remaining balance of US$2,900,000. The exercise of the Rincon West/Pocitos option grants 100% ownership of the Villanoveño II property as originally announced (2370 hectares) as well as the subsequently awarded Demasia Villanoveño II (20.5 hectares), both located at the Salar de Rincon, and the eleven properties designated as Pocitos 200, 201, 202, 203, 204, 205, 206, 207, 208, 209, 211, totalling 15,857 hectares located at the Salar de Pocitos.
Pipo/Alcalina Option Details
The Pipo/Alcalina option was announced on August 4, 2021, encompassing three mining concessions totalling 5,380.5 hectares, conditional on US$4,000,000 in cash payments payable over 42 months and on US$7,000,000 in work expenditure commitments. The Company had previously completed US$800,000 in option payments and has now paid the remaining balance of US$3,200,000. The work commitment conditions have been waived, and the cash exercise of the Pipo/Alcalina option grants 100% ownership of Alcalina V, Pipo I and Pipo II, which are considered core properties at the Company’s Antofalla North Project. The option exercise was finalised by completing the outstanding cash payments specified in the option agreement. The prior property holders have accepted the full option exercise and have agreed to waive any outstanding work commitment specified in the original agreement. The original property holder group retains a 2% NSR on the properties, which the Company has the further option to purchase at any time for a cash payment of US$5,000,000.
Qualified Person
Frits Reidel, CPG is a Qualified Person as defined in National Instrument 43-101, and the Principal of Atacama Water, and is independent of Argentina Lithium. The disclosure in this news release has been reviewed and approved by Mr. Reidel.
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Argentina Lithium Completes Early Exercise of Property Options at Rincon West and Antofalla North Projects. source
