Galan Lithium Limited (ASX:GLN) (has executed a Binding Heads of Agreement with Portofino Resources Inc. (TSXV:POR) for the purchase of the right to earn a 100% interest in the Del Condor and Pucara lithium brine salar projects that abut Galan’s Hombre Muerto West tenements in Argentina.
Pending the completion of legal and title due diligence and any regulatory approvals, Galan will pay Portofino C$100,000 in cash and issue 650,000 fully paid Galan shares for Portofino’s 100% interest in the Hombre Muerto West Agreement.
The HMW Agreement gives Portofino the rights to earn a 100% interest in the Del Condor and Pucara lithium brine projects. Galan has a three month exclusivity period (with an option to extend for another threemonths) with Portofino.
Galan Managing Director, JP Vargas de la Vega, said The Del Condor and Pucara comprise two claim blocks totalling 1804 hectares. They are located within the world-class, Salar del Hombre Muerto, where Livent Corporation is currently producing lithium carbonate and Galaxy Resources Limited is developing its Sal de Vida project.
Completed surface sampling tested 18 sites within the claim blocks and returned high-grade brine assay results up to 1,031mg/L Lithium.
Mr de la Vega said that more importantly, the projects abut Galan’s Pata Pila and Rana de Sal interests, which recently returned outstanding high-grade, low impurity assay results in excess of 900mg/l Li. A maiden resource over Galan’s Hombre Muerto West tenements is expected next month.
“This strategic project acquisition by Galan consolidates its Hombre Muerto West project with a continuous line of concessions of ~14km from Catalina to Pata Pila,” Mr de la Vega said.
“This provides Galan with the opportunity to quickly build additional scale to its already significant brine resource and tenure in the region.”