Public exploration company American Salars Lithium has signed a letter of intent agreement with an arm’s-length vendor to acquire up to 100% of the Salar De Pocitos Project in Salta Province, Argentina.
The acquisition will increase the property size of the company’s lithium project footprint in the ‘Lithium Triangle’ by 1,635%, making it the second-largest asset in Salar de Pocitos.
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Under the terms of the agreement, American Salars will immediately acquire a 75% interest, with the potential to earn up to a 100% interest by making cash payments totalling $2m (C$2.89m) and issuing 20 million shares.
The transaction also includes a royalty and a buyout bonus, with a 10% finder’s fee applicable.
The Salar De Pocitos Project consists of ten mineral tenements spanning approximately 13,080 hectares (ha), contiguous to the company’s flagship 800ha Pocitos 1 Project.
American Salars finalised a deal to acquire full ownership of the Pocitos 1 Lithium Salar Project in Salta from Recharge Resources in June 2024.
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By GlobalDataAmerican Salars CEO and director R. Nick Horsley said: “This acquisition represents the culmination of tremendous work by the whole American Salars team and is a game changer for the company and our stakeholders.
“Having consulted with some of the largest lithium mining companies in the world, we clearly understand the prerequisites for a takeover or production scenario. Today’s acquisition provides our engineering and exploration team a district scale footprint to execute on.”
The company’s existing Pocitos 1 claim has an NI 43-101 mineral resource estimate (MRE) of 760,000 tonnes of lithium carbonate equivalent.
The new acquisition has undergone numerous historic exploration campaigns, and the initial work programme will focus on data compilation to update the company’s NI 43-101 MRE.
Following this, scoping and feasibility studies will pave the way for commercial production.
Located near key infrastructure, the Salar De Pocitos Project benefits from proximity to Provincial Highway Route 17 and the Pocitos industrial park, which has a natural gas pipeline and a railway line to the Port of Antofagasta on the Chilean Pacific Coast.
In a strategic move, American Salars has announced the termination of its option on the Candela II project in the Incahuasi Salar area of Bolivia.
