Cobalt explorer Marquee Resources (ASX: MQR) has edged into South America’s Lithium Triangle after agreeing to acquire Centenario Lithium, which owns a 30% stake in lithium brine explorer Lithium Power International Holdings (Argentina).
Lithium Power International (ASX: LPI) holds the other 70% in the Argentinian lithium brine explorer.
The Argentinian Lithium Power subsidiary wholly-owns seven leases in northern Argentina’s Centenario Salar, with the leases spanning 68 square kilometres.
According to Marquee, the leases, collectively known as the Centenario lithium project, are located in an area that has intense solar radiation for nine months of the year – making it favourable to a solar evaporation processing style.
“We are extremely pleased to have been able to secure this agreement, which allows us to acquire interests in this exciting lithium project,” Marquee managing director Charles Thomas said.
Centenario is close to other major lithium brine projects in the region including ones owned by Eramet (EPA: ERA), LSC Lithium (TSXV: LSC), Millennial Lithium (TSV: ML), Orocobre (ASX: ORE) and Livent (NYSE: LTHM).
Recent geophysical surveys at Centenario have identified a possible extensive brine body throughout the tenements.
Drill targets are being firmed up, with a drilling program to begin during the September quarter, with requisite permits already received from government agencies.
“We will now move quickly to complete due diligence and we look forward to activating the exploration and development program with one of the ASX’s leading lithium companies and now our new partner Lithium power,” Mr Thomas said.
Under the proposed acquisition, Marquee will pay a $25,000 option fee to carry out due diligence within 30 days.
Upon decision to proceed with the purchase, Marquee will issue 10.075 million ordinary shares at $0.10 each.
Once certain milestones have been met, Marquee will issue a total of $2 million in performance rights.
To fund the purchase, Marquee will launch a capital raising to secure $500,000 via the issue of shares at $0.10 each.
The company will carry out a placement under the same terms to raise a further $500,000.
Marquee anticipates the acquisition will be completed by early August.
By midday, shares in Marquee were steady at $0.042.