Latin American Minerals spins out lithium project

Latin American Minerals (LAT-V) is combining its lithium-potash properties in Argentina with those of Grupo Minero Los Boros and putting them into a company called Lithium Americas.

Latin American’s Cauchari salt lake property is right next to Los Boros’s Olaroz salt lake and together they cover 300 sq. km in the lithium brine district of Puna, Argentina. It’s thought that the lithium brine region that extends across Chile, Argentina and Bolivia hold more than 90% of the world’s lithium brine reserves. Lithium is a light metal used in phone, laptop and iPod batteries, as well as electric and hybrid vehicles.

The company will receive 8.4 million shares from Lithium Americas Argentinean subsidiary, plus a $1 million interest-free promissory note, of which $300,000 is payable within 45 days, and the rest payable from subsequent Lithium Americas financings.

If Latin American keeps a minimum 10% equity interest in Lithium Americas it will have the right to maintain its pro rata equity interest. It will also have the right to reacquire its property after two years if Lithium Americas has not become a publicly listed company. Board and management for Lithium Americas will consist of people from both Latin American and Los Boros.

Lithium Americas’ Argentina subsidiary holds an option to acquire 100% of the subsurface brine salts on the Los Boros property if it spends US$3 million in exploration over the first three years, spends another US$3 million while advancing towards a feasibility study in the following tow years, plus yearly property payments of US$70,000 and a 3% net profit interest on commercial production.

Similar to the deal with Latin American, if Lithium Americas doesn’t become a publicly listed company within two years, Los Boros will receive 3 million Lithium Americas shares, and will have the right to reacquire its property interests.

More than 37 surface brine samples have been collected in regular intervals across the 300 sq. km Cauchari and Olaroz salt lakes. Lithium grades have averaged 800 parts per million, potassium grades have been around 0.5% and magnesium-lithium grades have been around 3.6%. Latin American says the brine chemistry is favourable for lithium and potash production using evaporation pond technology. The company also notes that salt brine lithium deposits – where lithium brine is pumped to the surface – are usually cheaper to mine than hard rock lithium (spodumene) deposits.

Print

Be the first to comment on "Latin American Minerals spins out lithium project"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close