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American Salars Acquires Pocitos Lithium Salar Project

iconJun 20, 2024 23:09
Source:SMM
On 17 June, American Salars Lithium Inc.announced the acquisition of a 100% interest in the Pocitos 1 Lithium Salar Project from Recharge Resources.

On 17 June, American Salars Lithium Inc.announced the acquisition of a 100% interest in the Pocitos 1 Lithium Salar Project from Recharge Resources. The project, located near Pocitos in Salta, Argentina, spans 800 hectares and contains an inferred 760,000-tonne lithium carbonate equivalent (LCE) mineral resource, based on a December 2023 NI 43-101 Mineral Resource Estimate (MRE).

The acquisition terms include the issuance of 5,000,000 common shares of American Salars to Recharge Resources, subject to a 24-month escrow. Additionally, American Salars will assume up to USD $250,000 in outstanding tax liabilities and pay AUS $80,000 for the MRE. The project includes a 2.5% net smelter royalty (NSR) on produced minerals, with an option for American Salars to purchase 1.5% of the NSR for CAD $1.5 million.

The Pocitos 1 project, along with its neighboring Pocitos 2 block, has undergone extensive exploration, including surface sampling, trenching, geophysics, and drilling. The company plans to update the MRE and commence new drilling once permits are issued by the Salta Mines Department, aiming to advance the project towards production.

(Revised on 24 June to correct transaction details)

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