by Greg Klein | November 21, 2016
Among the companies active in South America’s Lithium Triangle, NRG Metals TSXV:NGZ has finished due diligence on two properties that would comprise the Carachi Pampa project in northwestern Argentina. Totalling 6,387 hectares, the contiguous properties sit in an area hosting geological features common to other lithium-rich salars in the region, the company stated on November 18. “The lithium target is a paleo salar (basin) at depth that has the potential to host lithium-enriched brines.”
Located 40 kilometres from the town of Antofagasta de la Sierra at about 3,000 metres in elevation, the properties have winter access, a paved road 10 kilometres away and nearby services.
NRG has retained experienced lithium explorers Rojas and Associates and Sergio Lopez and Associates to review the project, with Rojas to complete a 43-101 technical report.
The properties are subject to different four-year purchase agreements, according to an LOI announced September 21. With all dollar figures in U.S. currency, one property calls for $120,000 on signing a definitive agreement, $200,000 in each of three annual payments and $600,000 at the end of the fourth year. A 1% NSR applies, which NRG may buy back for $1 million.
The other project would cost $160,000 on signing, $100,000 in two annual payments, $250,000 in year three and $625,000 in year four. Again, the company may buy back the 1% NSR for $1 million.
NRG offered a private placement up to C$1 million. Additionally, the company has negotiations underway on other properties.
In October NRG announced a management team for its Argentinian subsidiary, NRG Metals Argentina S.A. Executive director James Duff has written several 43-101 reports for Argentinian projects and served as COO of McEwen Mining TSX:MUX acquisition Minera Andes and president of South American operations for Coeur Mining NYSE:CDE.
Non-executive director José Gustavo de Castro is a chemical engineer with extensive experience in the evaluation and development of Argentinian lithium projects including the continent’s largest lithium producer, FMC Corp’s Hombre Muerto operation.
Manager of business development and corporate relations José Luis Martin’s 35-year career includes senior positions with Galaxy Lithium S.A. and Rio Tinto’s (NYSE:RIO) Argentinian projects.
Director Jorge Vargas specializes in property, mining and business law in Argentina.
Also last month NRG announced plans to spin out other assets to concentrate on lithium. The portfolio currently includes the LAB graphite project in Quebec and the Groete gold-copper resource in Guyana.