Xantippe Resources (XTC) has entered an option agreement to acquire Luz Maria, a tenement prospective for lithium in Catamarca, Argentina.
Luz Maria has an area of nearly 3400 hectares where previous drilling has confirmed lithium rich brine at depth.
The tenement has had its environmental impact assessment study approved and all of its titles and licences are confirmed as up to date.
The agreement forms part of the company’s wider strategy to acquire 17,000 hectares within the Catamarca region.
The company earlier announced its option to acquire three other lithium tenements, Rita, Rita I and La Sofia, within the Carachi Pampa lithium project.
The acquisitions will be made through the purchase of Carolina Lithium, who currently holds the right to acquire the tenements.
Xantippe will pay a non-refundable option fee of US$320,000 (A$444,745) to conduct due diligence at the tenement for a period of three months.
In order to exercise the option, the company will need to pay US$2.18 million (A$3 million) to the Luz Maria owners and sign a definitive acquisition agreement.
Following the signing, US$10 million will be payable to the tenement owners split into two separate payments.
The company will also issue US$10 million (A$13.9 million) worth of shares to the Luz Maria owner 180 days after signing the definitive agreement and subject to shareholder approval.
The company has raised $15.22 million from a placement, which will be used to fund the potential options to acquire the Carachi lithium project, exploration drilling, potential new acquisitions, and working capital.
Managing Director Richard Henning said the acquisition will add to its strategy.
“The acquisition of Luz Maria adds to our strategy of extending our footprint in Catamarca and developing a lithium product sourced from brines in South America,” he said.
“This tenement has been widely considered as the ‘jewel in the crown’ of Catamarca and
through our partners in Argentina, the Arecco Group, we were able to secure the option against many other suitors.
“To add to this, the infrastructure in Luz Maria is well established with access roads, electricity, a small town with a hotel, and good local management.”
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