Centurion Minerals Ltd. said March 29 that Portofino Resources Inc. executed a letter of intent with a concession owner to acquire up to an 85% interest in two lithium brine projects. The projects each cover about 3,000 hectares in Catamarca, Argentina.
Consideration to the undisclosed vendor includes an initial US$10,000 cash deposit and an aggregate US$750,000 in cash and 2 million shares spread over a four-year period.
In addition, Portofino must spend a cumulative US$4 million on the project by the fourth anniversary, with an option to complete a preliminary economic assessment instead of the last US$2 million in the fourth year.
Upon completing the earn-in, Portofino will have the right to convert the vendor's remaining 15% interest to a 2% net smelter royalty, with an option to buy back half of the royalty for US$1 million.
Portofino is planning a surface water and augur brine sampling program to check historical exploration results.
Centurion introduced Portofino to the project owner and will act as operator of both properties. Portofino will pay US$75,000 and issue 500,000 shares to Centurion and will grant Centurion 10% of its interest in both projects.
The transaction is subject to due diligence, definitive agreements and TSX Venture Exchange approval.