Lithium X Energy has entered a binding purchase and sale agreement to acquire 100% of the Arizaro lithium brine project in Argentina's Salta Province.
This project comprises 33,846ha in 11 mining claims, covering parts of the western and eastern portions of the Salar de Arizaro, which is one of the largest known salt lakes in the district.
Lithium X Energy executive chairman Paul Matysek said: "Arizaro is an accretive acquisition for Lithium X, well priced under current market conditions, with considerable exploration potential.
"It is one of the largest salars in the world thought to contain elevated lithium brine values and has gone largely unexplored. Preliminary indications of brine geochemistry suggest the possibility of employing Arizaro Project brine products to increase and enhance processing of Sal de los Angeles brine, the company's flagship asset, also located in Salta, Argentina."
The Arizaro Project has decent infrastructure in the Puna region, and is also expected to benefit from additional development of adjacent large-scale mining projects, including First Quantum's Taca-Taca copper site and Fortuna Silver's Lindero gold mine.
Salar de Arizaro is connected by a highway and railroad that link the project to Chile and Pocitos, where natural gas and an industrial park are located.
Other property owners in Arizaro include Eramet, Sentient and REMSA (Salta government).
Historical sampling on the western margins of Salar de Arizaro indicated high lithium values near-surface within a halite dominant salar, similar to nearby Rincon, Salar del Hombre Muerto and Atacama projects, which all host advanced or producing lithium brine operations.
In consideration of the project, Lithium X will pay $250,000 and issue 3,500,000 common shares to the vendor for a 100% interest in the project on closure, which is subject to receipt of title certificates.
Regarding the purchase, a finder's fee of 5% of the total acquisition price ($12,500 and 175,000 shares) will be payable.
The acquisition of the project is subject to certain conditions such as receipt of all approvals, including that of the TSX Venture Exchange.
Currently, the company is planning an exploration programme to determine the quantity and quality of the contained brine at Arizaro, as well as is starting to assess the brine for use in mixing with Sal de los Angeles brine.