Millennial LithiumCorp. said July 19 that it has entered a deal to acquire a lithium projectin Argentina's Salta province.
The project is strategically located within the lithium triangle.A review of the published data on the project showed a prominent regional-scalestructure with abundant evidence of hydrothermal activity.
The company however, did not disclose the project's locationor the seller as it is in talks to acquire more properties and doing so could beharmful to the company's efforts.
Under the terms, the company is required to pay US$200,000 uponexecution of a definitive agreement, and pay US$500,000 and issue US$500,000 worthof common shares upon exchange approval.
Another US$500,000 in cash and US$500,000 in shares would bedue six months from approval, and US$1 million in cash 12 months from approval.
The project is subject to a 1.5% net smelter returns royalty,which can be purchased for US$3 million.
In addition, the Vancouver, British Columbia-based company isarranging a nonbrokered private placement to raise C$1.6 million to fund the acquisition.
The placement will comprise 2.5 million units priced at 65 Canadiancents each. Each unit will consist of 1 common share and 0.5 of a share purchasewarrant, exercisable for two years at 90 cents each.
Millennial Lithium recently closed the acquisition of the Lincoln lithium property inNevada.