The deal includes a highly prospective land package that has expanded the footprint of its Salinas lithium project to over 6,230 hectares.
Latin Resources has increased the size of its battery metal search in Brazil.
This happened after its subsidiary Belo Lithium Mineracao exercised an option to acquire a very promising plot of land.
In this way, the footprint of its Salinas lithium project has been extended to over 6,230 hectares.
On the other hand, the company confirmed the presence of pegmatites containing spodumene on the site.
It will also initiate more comprehensive exploration to target potential drill targets.
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Mining characteristics of the terrain
The property known as “Lajinha” was acquired after sealing a binding 24-month option agreement with Brazilian explorer Mineracao Salinas.
Recent diamond drilling at the Salinas project has confirmed its potential to host a new high-grade lithium discovery.
Even so far, work has yielded high grades of more than 3% lithium oxide through testing of pegmatites in the soil.
Logging at the project has revealed a coherent set of separate individual pegmatites that extend over 500 meters strike.
Payments by agreement
The move will see the company acquire a 100% stake in the new concession and push the boundaries of its Salinas lithium project further east.
The agreement included a cash payment of US$15,000 and the issuance of common shares of Latin for an equivalent value of US$15,000.
The explorer explains that he could be entitled to additional payments depending on the value of newly defined resources identified during future drilling campaigns.
The future consideration for the acquisition of the property includes a payment of US$75,000 to Mineracao Salinas in 12 months.
Plus a 3% net smelter royalty retained by the seller under a separate royalty agreement.
If a minimum resource of 10 million tons at 1.3% lithium is defined in the project, Latin will also pay further consideration of US$50,000 and the equivalent of US$50,000 in common stock.
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