(Image via Lithium Chile Inc.)
Engaged in the acquisition and development of mining properties in Chile, Lithium Chili Inc. (TSX-V: LITH, OTC: LTMCF, Forum) expands its scope to include a high quality project in Argentina.
In a May 2021 press release, LITH announced that it had added an Argentinian lithium salar property to its portfolio through a binding letter of intent with SMG SRL from Jujuy, Argentina. The company can acquire up to 80% interest in the 233 km2. Salar De Arizaro located in the province of Salta. Large businesses near the area include Eramine (Eramet SA) and LITICA (Previously Lithium LSC).
The letter of intent gives Lithium Chile the opportunity to acquire an important and dominant land position in the center of Argentina’s largest undeveloped wage earner.
A three-hole exploration program in 2019 identified an area of high-grade lithium in the aquifer. The size and potential of Salar De Arizaro are well known.
- 850 mg / l lithium grades already established from a three-hole drilling program carried out in 2019
- Area of the Arizaro prospect larger than the Salar de Pastos Grande (Millennial Lithium) and the Salar de Pozuelos (Litica Project)
- Lithium Chile will be one of the only small companies to have active programs in two of the “Lithium Triangle and CloseCurlyDoubleQuote; countries
Looking at these analysis results, the company hails this as a transformational acquisition. The President and CEO of Lithium Chile and CloseCurlyQuote; s, Steve Cochrane said that by entering into the deal, it offers LITH the opportunity to transition from a pure exploration company to that of a producing company.
“We believe this opportunity has the realistic potential to be commercially viable for production and enhances our Chilean opportunities by advancing our plans a number of years. This opportunity exposes our shareholders to an expanding and geographically diversified portfolio in two of the leading countries that make up the prolific ‘Lithium Triangle & CloseCurlyQuote; Our exploration activity will be concentrated in Chile while our transition to a potential lithium producer will focus on our Argentinian asset. & CloseCurlyDoubleQuote;
53% of the world’s lithium reserves are in Chile, which accounts for 20% of world production, but lithium can only be exploited under a special contract or in partnership with a public company.
After Chile and Australia, Argentina is the third largest lithium producer in the world.
While the lower house of Chile & CloseCurlyQuote; While debating a bill for a new royalty on lithium and copper sales based on production levels, Argentina is expected to reach more than $ 10.7 billion (USD) in annual exports over the course of the next decade.
Benchmark Minerals Intelligence reported last week that due to low availability, engineering grade lithium carbonate rose 4.5% to $ 12,700 / t (USD) during April 2021, while battery grade lithium rose 6% to $ 13,625 / t (USD).
This is clearly an acquisition of immense importance for the future of Lithium Chile & CloseCurlyQuote; and is a premier addition to its portfolio of lithium properties, which consists of 71,900 hectares covering sections of 12 salars and a laguna complex in Chile and now 23,300 hectares in Argentina. There are also five properties under the jurisdiction of Lithium Chile and CloseCurlyQuote; which are prospective for gold, silver and copper.
(Lithium Chile Inc. stock chart – May 2020 to May 2021. Click to enlarge.)
Investors who have not yet verified the opportunity of Lithium Chile & CloseCurlyQuote; would be wise to do so now that they have moved to Argentina.
For the latest updates on this company, visit lithiumchile.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.