Ultra Lithium Inc. signed a binding letter of intent to acquire an 80% interest in a lithium salar property in Puna Plateau, Argentina, from Jinshan Minera Argentina SA.
The property comprises six lithium and two gold exploration licenses covering approximately 20,535 square kilometers.
Under the terms, Ultra Lithium will secure an initial 80% interest in the project during the exploration stage, which will increase to 90% when the company proceeds to the development stage.
The company will also be responsible for all the exploration and development expenditures on the property.
The transaction is subject to the signing of a definitive agreement upon completion of due diligence by Ultra Lithium, according to a Sept. 22 release.
In addition, the company plans to complete a nonbrokered private placement of up to 2 million units at 15 Canadian cents apiece to raise up to C$300,000.
Proceeds will be used to fund the exploration on Ultra Lithium's South Big Smoky Valley lithium project in Nevada, and for general working capital purposes.