- Xantippe Resources (XTC) has entered into an option agreement to acquire Luz Maria, a prospective lithium property in Catamarca, Argentina
- Luz Maria has an area of nearly 3,400 hectares where previous drilling has confirmed lithium-rich brine at depth
- The building’s environmental impact assessment has been approved and all of its titles and licenses are confirmed to be current
- The company has raised $15.22 million through a placement, which will be used to fund potential Carachi lithium project acquisition options, exploration drilling, potential new acquisitions and working capital.
- Shares closed down 20% today at 0.8 cents each
Xantippe Resources (XTC) has entered into an option agreement to acquire Luz Maria, a prospective lithium property in Catamarca, Argentina.
Luz Maria has an area of nearly 3,400 hectares where previous drilling has confirmed lithium-rich brine at depth.
The tenement has had its Environmental Impact Assessment approved and all of its titles and licenses confirmed to be current.
The deal is part of the company’s broader strategy to acquire 17,000 hectares in the Catamarca region.
The company earlier announced its option to acquire three other lithium buildings, Rita, Rita I and La Sofia, as part of the Carachi Pampa lithium project.
The acquisitions will be made through the purchase of Carolina Lithium, which currently holds the right to acquire the properties.
Xantippe will pay a non-refundable option fee of US$320,000 (AU$444,745) to carry out due diligence in the building for a period of three months.
In order to exercise the option, the company will have to pay US$2.18 million (AUD$3 million) to the owners of Luz Maria and sign a definitive acquisition agreement.
Following the signing, US$10 million will be payable to property owners divided into two separate payments.
The company will also issue US$10 million (A$13.9 million) of shares to owner Luz Maria 180 days after the signing of the definitive agreement and subject to shareholder approval.
The company has raised $15.22 million through a placement, which will be used to fund potential Carachi lithium project acquisition options, exploration drilling, potential new acquisitions and working capital.
Managing Director Richard Henning said the acquisition would strengthen his strategy.
“The acquisition of Luz Maria adds to our strategy of expanding our footprint in Catamarca and developing a lithium product from brines in South America,” he said.
“This building has been widely regarded as Catamarca’s ‘crown jewel’ and
thanks to our partners in Argentina, the Arecco Group, we were able to secure the option against many other suitors.
“To add to this the infrastructure of Luz Maria is well established with access roads, electricity, a small town with a hotel and good local management.”
Shares closed down 20% today at 0.8 cents each.
