Rock Tech Lithium Inc. signed a letter of intent through its Minerales de Baterias SA de CV unit for the acquisition of the Nogalito lithium property in Mexico.
The company detailed the proposed deal in a Feb. 20 statement. Consideration will comprise US$130,000 in cash payments and the issuance of 250,000 common Rock Tech shares, both spread over three years. Rock Tech is also required to spend at least US$500,000 on exploration at Nogalito by the transaction's third anniversary.
According to Rock Tech, the Nogalito project represents a represents a low-cost option on a lithium brine target over the medium term. The company remains "very bullish" over the long term for the battery materials sector, particularly lithium, and it intends to acquire additional brine deposits in the coming months.