Vancouver-based Argentina Lithium will not be proceeding with the option agreement on the Arizaro lithium project in the Arizaro Salar in Salta province, the company announced on Friday, as it outlines a future strategy.
The TSX-V-listed firm has determined that the high risk and potential reward for the project, which it acquired in January last year, was not suitable for the economics of the company.
Instead, Argentina Lithium would focus on its lithium property portfolio in South America’s prolific lithium triangle and other high potential locations.
The firm also announced a share consolidation on a basis of one post-consolidation common share for every four pre-consolidation common shares. This will reduce the issued and outstanding shares of the company from 76 287 707 to 19 071 926.
“The board is restructuring the capital in order to bolster Argentina Lithium’s ability to conclude new project acquisitions at more realistic valuations,” president and CEO Nikolaos Cacos said.
“Further, it strengthens the appeal of the company to a broader spectrum of investors so that we more effectively grow our company.”