PERTH (miningweekly.com) - Critical minerals developer Bass Metals has reached an agreement to acquire the San Jorge lithium brine project, in Argentina.
The company in March this year signed a binding term sheet to acquire Blackearth SA, now Andes Litio SA, which holds an option over the San Jorge lithium project, in Argentina.
Under the terms of the agreement, Bass Metals will issue 150-million shares in consideration for Andes Litio, on completion of the transaction, and a further 100-million shares nine months after the grant of the necessary permits to allow exploration activities at San Jorge.
Bass will also pay A$1-million in cash on achieving an inferred mineral resource estimate of more than 250 000 t of lithium carbonate at San Jorge, and a further A$1-million on achieving a measured and indicated mineral resource of 200 000 t of lithium carbonate.
Bass on Tuesday told shareholders that diligence inquiries had now been completed, and that the company would proceed with formal documentation to acquire Andes Litio.
Bass is expected to start exploration activities at San Jorge shortly, with a focus on the San Francisco Salar.
“We are pleased to be in a position to begin work at San Jorge. The San Jorge project is an important part of our broader strategy moving forward of providing an integrated exposure to graphite, advanced graphite materials and lithium - markets we see as critically undersupplied as the take-up of battery-related technology accelerates,” said Bass executive director Peter Wright.
“Anchoring this strategy is the company’s progress to date at Graphmada where we successfully sold concentrates across all classes. Bass is well placed to progress on all these fronts of its strategy over the balance of 2021 with significant work planned across all three areas of strategy.”
The San Jorge project consists of 15 granted exploration licences covering some 36 000 ha of land.
Under the option agreement over San Jorge, Andes Litio will be required to pay $4.5-million to the vendor, and to spend $2.95-million on the project area to acquire full ownership.
Bass is hoping to establish a resource at San Jorge as soon as practicable, and will undertake exploration at the project area over the remainder of the year.