Wealth Minerals Ltd.'s Chilean subsidiary entered a letter of intent for an option to acquire a 100% royalty-free interest in the Laguna Verde lithium property.

The project comprises 23 concessions covering 2,438 hectares in northern Chile, according to the company's Dec. 19 news release.

Wealth Minerals can acquire the property by paying US$5 million and issuing 7 million common shares over a four-year period.

During the option period, the company's Chilean subsidiary will be responsible for maintaining the concessions in good standing and paying all fees and assessments.

The company noted that the property hosts historical inferred resources of 512,950 tonnes of lithium carbonate equivalent and 4.2 million tonnes of potassium chloride equivalent, as outlined in a 2010 technical report.

Wealth Minerals will undertake a nonbrokered private placement to raise gross proceeds of up to C$1 million to fund the Laguna Verde payments as well as for general and administrative expenses and working capital.