Canadian company American Salars Lithium has reached an agreement to acquire full ownership of the Pocitos 1 Project in Salta, located in the namesake salar, currently managed by Recharge Resources, the vendor.
By Panorama Minero
According to the company, the project spans 800 hectares and boasts an inferred resource estimate of 760,000 tonnes of lithium carbonate equivalent (LCE), as per the NI 43-101 mineral resource estimate prepared in December 2023. These inferred resources are situated in the Pocitos 1 block, where all drilling activities have been conducted.
Under the terms of the agreement, American Salars will issue five million common shares to the vendor, subject to a 24-month escrow period with staggered release terms. Additionally, the vendor has agreed to limit share sales and proxy all voting rights to American Salars' management.
Upon closure of the deal, the vendor will receive 2.5 million bonus warrants, each allowing the purchase of one common share at C$0.75, provided the Pocitos 1 property's resources reach a combined measured, indicated, and inferred total of one million tonnes of LCE.
The Pocitos 1 property is subject to a 2.5% net smelter royalty on minerals produced, with American Salars having the option to buy back 1.5% for C$1.5 million (US$1.09 million).
Additionally, American Salars plans to initiate a new drilling and production program once necessary permits are secured from the province's Secretariat of Energy and Mining.
Following the announcement, Nick Horsley, Director and CEO of American Salars Lithium, remarked: "We are excited to add the Pocitos 1 project to our lithium portfolio in Argentina. We now control both the Candela II lithium salar project, with an inferred LCE of 457,000 tonnes, and the Pocitos 1 project, which combined with its neighboring Pocitos 2 block, hosts 760,000 tonnes of LCE. We look forward to collaborating with our technical team to update the NI 43-101 mineral resource estimate to reflect our Pocitos 1 concession, representing approximately 60% of the combined area used in the existing mineral resource estimate and encompassing all drilling conducted to date."
Meanwhile, Recharge Resources will now focus on its Canadian projects, including the Brussels Creek Gold project in British Columbia and the Georgia Lake Lithium Project in Ontario.
