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Strike Resources to acquire 90% stake in Solaroz lithium project in Argentina

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Strike Resources to acquire 90% stake in Solaroz lithium project in Argentina

Strike Resources Ltd. entered into an agreement to acquire a 90% interest in the Solaroz lithium brine project in Argentina by acquiring a 90% interest in Hananta SA.

Hananta, in turn, entered into an option and purchase agreement with the owner of the exploitation concessions and will pay the owner US$6.6 million in cash and shares over four years.

Solaroz comprises eight concessions totaling 12,000 hectares adjacent to Orocobre Ltd.'s Salar de Olaroz lithium brine project.

Strike said March 13 that its first step will be to complete an environmental impact assessment report and start preparatory work for a detailed geophysical program.

The company plans to fast-track an exploration program to test the geological model to identify the potential for commercial development of lithium production.

Strike said it will fund 100% of the development costs to completion of a bankable feasibility study.

Additionally, Strike established a commercial partnership with Hanaq Argentina SA, a 10% shareholder in Hananta, to provide local operating support and services to the company.

Hanaq can elect to convert its holding in Hananta to a 1% net smelter royalty at any time.