Canadian firm MGX Minerals is set to hit the road running in Chile, announcing on Tuesday that it had made its option agreement to acquire an interest in three lithium projects definitive, and that it would start a drilling programme this week.
MGX, which in August announced an option to buy into the Chilean lithium exploration properties, will acquire 50% of the Francisco Basin, Laguna Brava and Laguna Escondida projects.
The company said that it would have drilling contractors on site this week to start an exploration programme at Francisco Basin, the results of which would be used for a National Instrument 43-101-compliant resource estimation.
MGX is also preparing to deploy its rapid lithium extraction technology in Chile, following the processing of samples from the Laguna Brava project.
The rapid lithium brine system would be shipped “shortly”, the company noted.
MGX explains that its rapid lithium extraction technology eliminates or greatly reduces the physical footprint and investment in large, multi-phase, lake-sized, lined evaporation ponds. It is also said to enhance the quality of extraction and recovery across a complex range of brines, when compared with traditional solar evaporation.
To acquire an undivided 50% interest in the company holding the projects, MGX has agreed to make option payments totalling $1.5-million. The first $100 000 portion of the option payments are payable in cash and the remainder will be made in common shares.
MGX has agreed to incur exploration expenditures totalling $2-million and also complete an National Instrument 43-101 resource estimate on at least one of the projects no later than 20 months after the effective date of the memorandum of understanding.
MGX will be the project operator and has appointed Chilean Lithium Salars director Aldo Boitano to work alongside Kura Minerals.
Chilean Lithium Salars will contribute an equal amount of expenditure to maintain its respective interest in the projects.