VANCOUVER (miningweekly.com) – Canadian explorer Lithium X has signed a definitive agreement with Aberdeen International to acquire the remaining 50% interest in Potasio y Litio de Argentina (Plasa), which holds the company’s flagship Sal de los Angeles project, in Argentina.
"This transaction marks another milestone for Lithium X, as the company will now control 100% of Plasa, the Argentine subsidiary that fully controls the Sal de Los Angeles project. This transaction provides Lithium X with the ultimate flexibility in developing the project and more easily delivers shareholder value over the long term," director and CEO Brian Paes-Braga stated.
The TSX-V-listed explorer in April 2016 acquired a 50% interest in the project from Aberdeen, together with an option to acquire a further 30% interest, for a total interest of 80% after it has delivered a feasibility study and issued Aberdeen with C$5-million in Lithium X scrip.
Under terms of the consolidation deal, Lithium X will pay C$5-million in cash and issue six-million Lithium X shares. If the Lithium X shares have a volume weighted average trading price of C$3 or more during a period of 20 consecutive trading days within three years following closing, the company will issue Aberdeen with a further three-million shares.
Lithium X and Aberdeen will terminate their existing shareholders' agreement regarding the project company, Plasa, which will become a wholly owned subsidiary of the Lithium X.
The transaction is expected to close by July 12, subject to customary closing conditions, including all required regulatory and other approvals.
The Sal de los Angeles project consists of 8 154 ha, covering 95% of Salar de Diablillos, and has a compliant mineral resource estimate of 1.04-million tonnes of lithium carbonate equivalent (LCE) in the indicated category, and 1.01-million tonnes of LCE in the inferred category.
Earlier this year, Vancouver-based Lithium X reported that it has received permits to build an initial ponding facility, designed for an output of about 2 500 t/y of LCE. The permits allow for the construction of brine collection, pumping, piping and ponding facilities comprising 62.6 ha of lined ponds, designed to produce a high-purity 5% lithium concentrate.