- Xantippe Resources (XTC) picks up an option to acquire a third tenement in the Catamarca province of Argentina under an option agreement signed late last year
- The La Sophia tenement covers 3,000 hectares and the company considers it to be highly prospective for lithium brine
- The trio of tenements collectively make up the Carachi Pampa lithium project
- Managing Director Richard Henning says the acquisition extends Xantippe’s footprint in Catamarca and advances its strategy of developing a lithium product sourced from brines
- XTC shares are up 9.09 per cent at 1.2 cents
Xantippe Resources (XTC) has secured an option to acquire another lithium brine tenement in the Catamarca province of Argentina.
The La Sophia tenement marks the third lithium brine tenement the company has picked up through a six-month option agreement signed with Carolina Lithium in November last year.
The other two tenements, Rita and Rita1, and La Sophia are collectively known as the Carachi Pampa lithium project.
Rita and Rita1 cover more than 6,000 hectares (60 square kilometres) in the Carachi Pampa salt flat north of Lake Resources’ (LKE) Kachi project in the Catamarca province.
La Sophia is located about 200 metres south of Rita and spans 3,000 hectares. Xantippe said, like the other two tenements, it was considered to be highly prospective for lithium brine.
The company said the new tenement’s geological structure is expected to be a continuation of Rita and represents an opportunity to expand Xantippe’s landholdings in the salt flat and improve the feasibility of a direct lithium exchange project.
“The acquisition of La Sophia adds to our strategy of extending our footprint in Catamarca and developing a lithium product sourced from brines in South America,” Managing Director Richard Henning said.
“This will be a clean product using direct lithium extraction, which requires a smaller environmental footprint and uses less water.”
Xantippe will acquire La Sophia by paying a non-refundable option fee of US$40,000 (A$55,464) plus legal expenses totalling US$15,000 (A$20,800) to the La Sophia owner.
The company will pay a further US$460,000 (A$637,960) upon exercising the option and signing an acquisition agreement within three months of the option being exercised.
Within 12 months of signing a definitive agreement, it will make two separate payments to the owner totalling US$1.5 million (A$2.08 million).
Following the exercise of the option and the acquisition of Carolina, Xantippe will hold the rights to acquire all the shares in Arlupo SA, which holds the rights to the three tenements that make up the Carachi Pampa lithium project.
XTC shares were trading 9.09 per cent higher at 1.2 cents at 12:06 pm AEDT.