Argentina Lithium & Energy Corp. is pleased to announce that it has won the public tender to purchase 100% interest of the Rinconcita II mining concession area (“Rinconcita II” or the “Property“) located on the Salar de Rincon in Salta Province, Argentina, from provincially-owned company Recursos Energéticos y Mineros Salta S.A. (“REMSA“). The Property consists of 460.5 ha of salt flat, located adjacent to and east of Argentina Lithium’s Rincon West property, and located adjacent to and west of Rincon Mining’s Rincon Project, which was purchased by Rio Tinto earlier this year.
“Our team identified the Salar de Rincon as an area of exceptional potential in 2021, leading to our initial property acquisition at Rincon West. Our positive drill results announced on July 13, 2022 have validated this confidence. The acquisition of Rinconcita II is a major step to add prime salt flat holdings to one of our leading projects. Our management team is looking forward to working with the Province to advance this project through exploration to assess its resource and production potential,” stated Nikolaos Cacos, President and CEO.
The Salar de Rincon is located within the Lithium Triangle of northwest Argentina. Historic work on the salt flat has determined that this is a mature salar with potential for lithium and potash resources. The Rinconcita II concession is road accessible from the local towns of Olacapato and Estacion de Pocitos. An international highway and major electrical power corridor are located 26 km northeast of the Property. A railhead and natural gas pipeline are located 34 km southeast of the property.
There has been no significant historical exploration work on the Rinconcita II property. The Property was not sampled by Argentina Lithium prior to the bidding process, although Argentina Lithium is currently drilling on its adjacent optioned property at Rincon West (see Figure 1 map, mining concession Villanoveño II). Argentina Lithium has also acquired the additional mining concession Demasia Villanoveño II (20.5 ha) through applications presented at the Salta mining authority.
Non-Brokered Private Placement
To ensure that the Company has sufficient funds to complete the acquisition and for working capital, Argentina Lithium also announces a part and parcel non-brokered private placement financing of up to 12,500,000 units at a price of $0.20 per unit (the “Units“) for gross proceeds of $2,500,000.
Each Unit will consist of one common share and one transferrable common share purchase warrant (a “Warrant“). Each Warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at $0.38 per share for two (2) years from the date of issue.
This financing is subject to TSX Venture Exchange (“TSXV“) acceptance and all securities to be issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws. Directors, officers and employees of the Company may participate in a portion of the financing. A commission may be paid on a portion of the financing. The proceeds of the financing will be used in part to complete the acquisition. The balance will be used for general working capital and exploration on its properties in Argentina.
The acquisition of the property is also subject to TSXV acceptance.
David Terry, Ph.D., P.Geo. is the Company’s Qualified Person as defined in National Instrument 43-101. The contents of this news release have been reviewed and approved by Dr. Terry.
Argentina Lithium & Energy Corp is focused on acquiring high quality lithium projects in Argentina and advancing them toward production in order to meet the growing global demand from the battery sector. The management group has a long history of success in the resource sector of Argentina and has assembled a first-rate team of experts to acquire and advance the best lithium properties in the “Lithium Triangle”. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
ON BEHALF OF THE BOARD