Pure Energy Minerals has completed the acquisition of a purchase option on lithium brine mining concessions at Terra Cotta Project in Salta, Argentina.
This deal was announced last month. Pure Energy Minerals entered a definitive property purchase agreement according to the Argentine law with the private owners of more than 13,000ha at the Pocitos Salar in Salta.
Pure Energy Minerals has started technical evaluation and design for its exploration programme to be conducted at the site in the first half of this year.
Pure Energy Minerals CEO Patrick Highsmith said: "Our partners in Argentina moved quickly to close our agreement on the terms to which we all agreed.
“This is typical of mining industry players in Salta, and it sets the stage for us to move quickly on our surface exploration programme and expected drilling programme before mid-year.
"Our independent QP is well underway with the preparation of the 43-101 Technical Report, and our work has already enhanced our knowledge of the geology and geophysics of the Pocitos Basin.
"We see attractive targets for lithium brine and look forward to reporting our first sampling results in the near-future."
The new project is situated in the lithium-rich Puna Region. Pocitos Salar is connected by the Salta Provincial Highway 17 and has adequate infrastructure and access to rail and power facilties.
Under the agreement, the company needs to pay $4m and issue six million common shares to the vendors as consideration for this acquisition.
After completion of the transaction, Pure Energy Minerals will receive a 100% beneficial interest in the properties.
If the company chooses to proceed with a feasibility study or elects to commence production, then an additional cash bonus payment of $1m will be paid to the vendors.
The transaction is subject to TSX Venture Exchange approval.