Argentina Lithium & Energy Corp. (TSXV: LIT | FSE: OAY3 | OTC: PNXLF) 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 2390.5ha of properties at the company’s Rincon West Project, including those on which the successful phase 1 drill programme was completed earlier this year. The exercised option also includes 15,857ha 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 5380.5ha of properties at the company’s Antofalla North Project, for which the company recently announced accelerated exploration plans for 2024.
Nikolaos Cacos, CEO of Argentina Lithium stated “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., Argentina Lithium owns 80.1% of ALE, with 19.9% ownership held by Peugeot Citroen Argentina S.A., a subsidiary of Stellantis N.V., following the transaction announced on 27 September 2023.
The Rincon West/Pocitos option agreement was announced on 28 September 2021. The option was conditional on cash payments of US$4,200,000 and payment of shares in the company equivalent to C$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 (2370ha) as well as the subsequently awarded Demasia Villanoveño II (20.5ha), 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 15,857ha located at the Salar de Pocitos.
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