Lithium

Lake Resources has a new neighbour in Argentina

Fri 10 Jun 22, 1:15pm (AEST)
Lithium 10 Brine
Source: iStock

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Key Points

  • Xantippe is to acquire the Luz Maria lithium brine lake mine from Crydon SA in Argentina’s Catamarca region
  • Move boosts Xantippe’s Latin American landholdings to over 12,000ha
  • Luz Maria is adjacent Lake Resources’ (ASX:LKE) Kachi project

Xantippe Resources (ASX:XTC) is progressing its goal to acquire landholdings within the Latin American ‘lithium triangle’ by purchasing the Luz Maria lithium brine mine in the Catamarca region of Argentina. 

Xantippe is to acquire the mine from current owning entity Crydon SA for US$2.18m upfront, and a further US$10m broken up between mid-August 2022 and early February 2023. 

XTC is also to seek approval from its shareholders to issue US$10m worth of shares to Crydon SA in August this year. All up, Crydon SA takes in over US$22m.

While the share issuance may put short-term pressure on the stock's price, Xantippe clearly believes the company is onto a good thing. 

Howdy, neighbour: A map locating Xantippe's projects in reference to Lake Resources' project
Howdy, neighbour: A map locating Xantippe's projects in reference to Lake Resources' project

Xantippe eyeing Catamarca 

Xantippe is aiming for 17,000ha of land in Catamarca, which is part of the so-called ‘Lithium Triangle.’ 

To the uninitiated, direct lithium extraction from brine lakes is less disruptive and uses less water than ore crushing practices.

The implications for a lithium mine with fewer refining burdens are clear: a faster route to production and sales while lithium prices are over 400% higher year-on-year.

Management recently travelled to the region and met the operational team; the company notes exploration approval applications are in-situ. 

Xantippe now has some 12,000ha in Latin America, across its Rita and La Sofia and Luz Maria projects. 

Exploration first on the cards 

Luz Maria covers 3,380ha on the Carachi Pampa salt flats geology and is immediately adjacent Lake Resources’ (ASX:LKE) similar project in Catamarca Province. 

The main outcropping units at Luz Maria are alluvial fans and a “small portion of a salt lake.” 

Based on project data collected, Xantippe expects to find a significant accumulation of brine underground. 

Luz Maria contains parts of the same reservoir tapped by Lake Resources in its project with a resource of 4.4Mt. 

Before Xantippe can sink drills into the ground, however, the Argentinian government must approve its plans first. And don’t forget shareholder approval for the extra US$10m worth of shares. 

Will the Luz Maria deal be enough to take Xantippe to a new level? One thing is missing from the company's plans: a production schedule
Will the Luz Maria deal be enough to take Xantippe to a new level? One thing is missing from the company's plans: a production schedule

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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