Lithium X Energy Corp. on Jan. 30 said it signed a binding agreement to acquire the Arizaro lithium brine project in Argentina's Salta province.
The 33,846-hectare property comprises 11 mining claims covering portions of the western and eastern areas of the Salar de Arizaro.
Under the deal, Lithium X will pay US$250,000 and issue 3.5 million common shares to the vendor for a 100% interest in the project, subject to receiving valid title certificates. The agreement remains subject to various conditions including approval from the TSX Venture Exchange.
The company is planning an exploration program to assess the quantity and quality of Arizaro's contained brine, while also beginning to assess the brine for use in mixing with brine from its nearby Sal de los Angeles property to increase and enhance processing.
Additionally, Lithium X will undertake follow-up exploration and resource definition at Sal de los Angeles, which is set to begin in February.
Resource expansion will consist of additional seismic surveys and drilling to basement depths to the north of the existing resource, and additional long- and short-term pump tests as well as the collection of additional samples for relative brine release capacity testing.
The company has been pilot processing Sal de los Angeles brine, testing two flow sheet designs both aimed at producing a 5% lithium brine concentrate. Metallurgical testing in on-site evaporation pools has achieved 4% lithium concentration, with the targeted concentration anticipated by the end of March.