The project boasts an inferred resource estimate of 760,000 tonnes (t) of lithium carbonate equivalent (LCE). Credit: Jose Luis Stephens/Shutterstock.

American Salars Lithium has sealed an agreement to gain full ownership of the Pocitos 1 Lithium Salar Project in Salta, Argentina, from Recharge Resources (vendor).

The project, which spans 800 hectares, has an inferred resource estimate of 760,000t of LCE as per the NI 43-101 mineral resource estimate prepared in December 2023.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The inferred resources are located in the Pocitos 1 block, where all drilling activities have been conducted.

This acquisition includes the assumption of the vendor’s tax liability, capped at $250,000, and a payment to WSP for the Mineral Resource Estimate (MRE), amounting to A$80,000 ($52,936).

Under the deal, American Salars will issue five million common shares to the vendor, subject to a 24-month escrow period with staggered release terms.

The vendor has also agreed to limit its share sales and to proxy all voting rights to the management of American Salars.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

At the deal’s closure, the vendor will receive 2.5 million bonus warrants, each allowing the purchase of one common share at C$0.75, provided the Pocitos 1 property’s resources reach a combined measured, indicated and inferred total of one million tonnes of LCE.

The Pocitos 1 property is subject to a 2.5% net smelter royalty on the minerals produced, of which American Salars has the option to buy back 1.5% for C$1.5m ($1.09m).

The completion of this transaction is contingent upon a finder’s fee.

American Salars plans to initiate a new drilling and production well programme once the necessary permits are secured from the Salta Mines Department.

American Salars Lithium director and CEO Nick Horsley said: “We are excited to add the Pocitos 1 lithium salar project to our Argentina lithium portfolio.

“We now control both the Candela II lithium salar project with an inferred LCE of 457,000t and the Pocitos 1 project, which in combination with its neighbouring Pocitos 2 block, hosts 760,000t LCE.

“We look forward to working with our technical team to update the NI 43-101 mineral resource estimate to reflect our Pocitos 1 concession, which represents approximately 60% of the combined ground used in the existing mineral resource estimate and hosts all of the drilling to date.”

Meanwhile, Recharge Resources will now focus on its North American projects including the Brussels Creek Gold project in British Columbia and the Georgia Lake Lithium Project in Ontario.