Option to Acquire ~70,000 Hectares Of Leases in Catamarca Province
Significantly Increases Size in Argentina
Sydney, Feb 9, 2017 AEST (ABN Newswire) - Lake Resources N.L. (ASX:LKE) ("Lake") is pleased to announce that it has significantly expanded its size and asset base in Argentina with an option agreement signed with local owners of a large block of approximately 72,000 Ha of exploration leases and applications over a newly recognised 100km long belt of potential lithium bearing pegmatites and pegmatite swarms in Ancasti, Catamarca province.
- Option agreement signed over a large area (~70,000 Ha) of potential lithium bearing pegmatites in Catamarca Province, Argentina
- Optioned leases cover a large part of a newly recognised 100km long belt of pegmatite swarms - includes both exploration and mining leases and applications
- Highly attractive acquisition terms: Issue 5 million LKE shares for a 6-month option, with further 15 million LKE shares in two tranches if option is exercised
- LKE shareholders gain increased asset optionality with exposure to both prime lithium brine leases plus a new lithium pegmatite belt
- LKE emerges with a significantly larger size and asset base in Argentina with ~160,000 Ha of highly attractive ground prospective for lithium
A study of past lithium spodumene mining leases, satellite image interpretation together with field visits, led a local technical team to recognise that the spodumene bearing pegmatites in Ancasti were exposed as a large long belt of pegmatites. These areas were applied for as eight "cateos", with nearly half granted at present. A small number of mining leases are also under application. Lake has conducted initial field visits to assess the project.
The lease holders, under a local company Petra Energy S.A. (in formation) have been in discussion with a number of interested parties and Lake considers itself fortunate to convince the owners that the Company's active presence in Catamarca and prime brine leases would constitute a good active partner to review, explore and potentially develop the area.
Latin Resources (ASX:LRS) ("Latin") holds adjoining leases (~76,000 Ha) in the same pegmatite belt and recently announced the commencement of drilling four targets, with rock samples reported from 4.9% to 7.1% LiO2 (announced 14 June 2016). LRS and Lake, should it execute the option agreement, will most likely control most of the potential belt of pegmatites.
Lake Resources Managing Director, Stephen Promnitz, commented: "We have continued to review opportunistic growth opportunities to deliver increased scale and optionality to Lake's asset base."
"Given recent transaction values in Argentina on lithium assets, this represents an excellent low-cost, all scrip acquisition and delivers exploration leases, mining leases and applications over ground that has compelling geology, in the opinion of our technical team."
"The blend of the positive results from Lake's lithium brine leases in Catamarca, the unlocked potential of our leases in Jujuy, combined with the potential upside of a large lithium pegmatite target from these new assets, should deliver real value for shareholders through our aggressive exploration activity."
Option terms over Leaseholding
Lake has signed an option agreement with Petra Energy S.A. (in formation) under the following terms:
- 4 million LKE shares for a 4 month option period, with 1 million shares on signing and 3 million shares within 60 days, extendable to 6 months with a payment of a further 1 million LKE shares. (50% voluntarily escrowed for 6 months). Due diligence and initial exploration to be undertaken at LKE cost.
- 15 million LKE shares on execution of the option, paid in two tranches, with 7.5 million shares upon execution and 7.5 million shares once 65% of the areas are granted for exploration (which may be simultaneously). (50% voluntarily escrowed for 6 months)
Background on Lithium Pegmatite Belt
Lake and its subsidiaries have maintained an active watch over an area of lithium bearing spodumene pegmatites in the Ancasti Ranges of Catamarca province previously known for small scale lithium production.
Latin Resources (ASX:LRS) announced on 14 June 2016 results of 4.9% LiO2 to 7.1% LiO2 from samples of spodumene from old mine workings, as part of exploration applications over approximately 76,000 Ha. These exploration areas have been since granted and approved for drilling activities.
Separately, a local technical team had conducted a review of the Ancasti Ranges and considered that the belt was substantially larger than the areas held by Latin. Literature reviews, satellite image studies and field visits helped identify a series of pegmatite swarms with lithium bearing potential over a belt of approximately 100km. Eight cateos were applied for with a number now granted and others pending granting. A number of smaller mining leases are also under application.
Initial field visits by Lake personnel have demonstrated outcropping pegmatites with coarse grained spodumene crystals 30-70cm long in a number of locations. Although data is limited, an option agreement was considered a prudent way to further assess the potential.
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About Lake Resources NL
Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) is a clean lithium developer utilising state-of-the-art ion exchange extraction technology for production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina among three other projects covering 220,000 ha.
This ion exchange extraction technology delivers a solution for two rising demands - high purity battery materials to avoid performance issues, and more sustainable, responsibly sourced materials with low carbon footprint and significant ESG benefits.