Chinese group Ganfeng Lithium has exercised its project participation right to acquire a 35% interest in the Sal de la Puna (SDLP) lithium brine project, in Argentina, Arena Minerals reported on Thursday.
The TSX-V-listed junior in March announced an agreement to acquire 100% of SDLP, which covers 11 000 ha of the Pastos Grandes basin. Ganfeng will acquire 35% of SDLP by funding $7.79-million of the acquisition costs.
Arena CEO William Randall said that the support and funding of Ganfeng was the most important step in closing the acquisition.
Ganfeng has also elected to exercise its right to appoint a board, with Sam Piggott having joined the Arena board.
“A 35% participation gives Ganfeng a significant interest in a promising project at an attractive valuation,” commented Piggott in a statement.
He added that the SDLP had the potential to host a sizeable resource, which could be sufficient to support commercial production of lithium products.