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Xantippe Resources (ASX:XTC) nearly doubles lithium brine tenement footprint

ASX News, Materials
ASX:XTC      MCAP $87.6K
14 June 2022 12:44 (AEST)

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Xantippe Resources (XTC) has secured an option to acquire four additional tenements in Argentina.

The four tenements have a total area of 9500 hectares, bringing Xantippe’s total landholding in Argentina to 21,900 hectares.

The company said each tenement was prospective for lithium brine deposits in Catamarca, together comprising the Carachi Pampa lithium project.

Xantippe Managing Director Richard Henning said the area was in one of the most “exciting and valuable” regions in the world, providing high purity lithium to drive the world’s electric vehicle future.

“We are delighted to have acquired such high-quality projects, located next to tier-one clean lithium developers,” Mr Henning said.

“We will commence exploration activities as soon as possible.

“The acquisition of the additional land option adds to our strategy of extending our footprint in Catamarca with plans to develop a lithium product sourced from brines that will offer a clean product using direct lithium extraction which requires a smaller environmental footprint and uses less water.”

Xantippe’s decision to purchase the new tenements came after the company exercised an option to buy Carolina Lithium in March.

As part of this deal, Carolina Lithium will become the beneficial owner of Arlupo SA — a company registered in Argentina that holds the rights to the acquisition of the tenements under an agreement between Ontario Inc and José Luis Fornaciari.

Xantippe will now purchase its new tenements from Ontario, with 50 per cent of the US$1.5 million (A$2.1 million) refundable option fee payable within four business days of offer execution.

A definitive agreement will then be executed during the due diligence period, upon which Xantippe will pay another US$500,000 (A$721,000).

Subject to shareholder approval, Xantippe will issue Ontario Inc a convertible note that denotes that Arlupo will pay US$1.5 million before 31 December 2022 and US$2 million before 30 June 2023.

Each of the notes shall be convertible into Xantippe shares at 1.8 cents each.

Xantippe Resources fell 5.56 per cent to trade at 0.85 cents at 12:34 pm AEST.

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