American Salars Lithium Inc (CSE: USLI) (OTC: ASALF) (FWB: Z3P) (WKN: A3E2NY) has acquired the Pocitos 1 Lithium Salar Project in Salta, Argentina from Recharge Resources Ltd. (CSE: RR) (OTC: RECHF) (Frankfurt: SL5) under a comprehensive agreement.
As part of the acquisition, American Salars said on Monday that it would issue 5 million shares shares to Recharge.
The company also agreed to pay Recharge’s tax portion for the acquisition, which shouldn’t be any more than USD$250,000, and will then pay an extra AUD$80,000 to the consultancy, WSP Australia for helping with the Mineral Resource Estimate.
After this, American Salars will issue 2.5 million warrants to Recharge, with a strike price of CAD$0.75 over five years. These warrants become exercisable if the Pocitos 1 property achieves a measured and indicated and inferred combined resource of 1 million tonnes LCE.
The Pocitos 1 property carries a 2.5 per cent net smelter royalty (NSR) on the minerals produced. American Salars can purchase 1.5 per cent (60 per cent) of the NSR for CAD $1.5 million.
The property spans 800 hectares with an inferred resource estimate of 760,000 tonnes of LCE. This is according to the NI 43-101 mineral resource estimate prepared in December 2023. All drilling activities have been conducted in the Pocitos 1 block.
American Salars also plans to start a new drilling and production well program after it gets the necessary permits.
Furthermore, the company now controls both the Candela II lithium salar project, with an inferred LCE of 457,000 tonnes.
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Pocitos is geographically adjacent to high grade lithium projects
Meanwhile, Recharge Resources will shift its focus to its North American projects, including the Brussels Creek Gold project in British Columbia and the Georgia Lake Lithium Project in Ontario.
Several notable lithium exploration and development projects surround the Pocitos Lithium Salar Project. Adjacent to it is the Pocitos 2 block, which combines with Pocitos 1 to contribute to an inferred 760,000 tonnes of lithium carbonate equivalent (LCE).
Nearby is the Pocitos West Lithium Project, also operated by Recharge Resources. Additionally, the Sal de Oro Project operated by POSCO Holdings (NYSE: PKX) is part of the broader lithium exploration efforts in the region.
Furthermore, approximately 90 km north of Pocitos 1 is the Hombre Muerto North Lithium Project operated by Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ). It’s located in the significant lithium-producing Hombre Muerto Salar.
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