Lithium Chile Eyes Laguna Blanca Project with Monumental Minerals Partnership
Calgary, Alberta -- March 9, 2022 -- NewsGenie -- Lithium Chile Inc. has announced a letter of intent with Monumental Minerals Corp. to acquire up to 75% of the Salar De Laguna Blanca project in Chile. The Laguna Project, spanning 5,200 hectares, is located in the lithium triangle, known for holding over half of the world's lithium supply.
Figure 1. Photo of the (a) active salar showing lithium rich brines in the north central sector of the property and (b) the paleo-salar area of Laguna Blanca looking to the southwest.
The Laguna Project features both active and paleo salar brines and salts. Preliminary surveys by Minera Kairos Chile Limitada, Lithium Chile's subsidiary, revealed sediment samples assaying up to 692 ppm cesium and 1450 ppm lithium. A TEM survey identified a high conductivity anomaly underlying the lithium-cesium anomaly.
Figure 2. Laguna Blanca - 23 exploration concessions totaling 5,200 hectares, 100% owned by Lithium Chile through its wholly owned Chilean subsidiary Minera Kairos Chile Limitada.
Steve Cochrane, President & CEO of Lithium Chile, stated that the joint venture provides an opportunity to advance the Laguna Blanca project while focusing on their Arizaro property.
The US government recognizes lithium and rare earth elements as critical metals, driving efforts to secure domestic supplies. Lithium prices have surged, driven by EV battery demand.
Figure 3. The lithium carbonate spot price over the past 12 months has appreciated by over 550%. Price unit is yuan/tonne.
Under the LOI, Monumental can earn up to a 75% interest in the Laguna Project by issuing shares to Lithium Chile, resulting in Lithium Chile holding 9.9% of Monumental's shares. Monumental will also make staged cash payments totaling C$1,500,000 and incur exploration expenditures of C$1,500,000 on the Laguna Project.
Upon completion of the earn-in, Lithium Chile will retain a 1% net smelter returns royalty. The transaction is subject to a definitive agreement and TSX Venture Exchange approval.
Terry Walker, VP of Exploration for Lithium Chile, has reviewed the technical information in the release.
Lithium Chile is focused on advancing its lithium property portfolio in Chile and Argentina and also owns properties prospective for gold, silver, and copper.