- Argentina Lithium & Energy (TSXV:LIT) published an initial resource estimate for its Rincon West lithium brine project in Salta Province, Argentina, including 238,000 tons of lithium carbonate equivalent (LCE) measured and indicated and 64,000 tons LCE inferred
- The miner is acquiring and developing high-quality lithium projects in Argentina to capitalize on increasing battery sector demand
- Argentina Lithium stock has given back 33.33 per cent year-over-year but remains up by 9.09 per cent since 2020
Argentina Lithium & Energy (TSXV:LIT) published an initial resource estimate for its Rincon West lithium brine project in Salta Province, Argentina, including 238,000 tons of lithium carbonate equivalent (LCE) measured and indicated and 64,000 tons LCE inferred.
At a price of US$10,409.37 per ton, according to Shanghai Metals Market, this represents more than US$3.1 billion in the ground, a far cry from the company’s current C$16.51 million market capitalization.
Auto giant Stellantis (NYSE:STLA) took a 19.9 per cent stake in the company’s Argentinian subsidiary in September 2023, which it has the right to convert into LIT shares, subject to certain conditions, complementing the investment with a seven-year offtake agreement good for up to 15,000 tons of lithium carbonate per year with the potential for extensions.
The resource estimate does not account for the Paso de Sico concessions to the north composed of 3,742.9 hectares prospective for resource expansion.
Management commentary
“This initial resource marks a pivotal step in unlocking the full potential of Rincon West and reinforces Argentina Lithium’s position at the center of one of the most strategic lithium districts in the world,” Nikolaos Cacos, Argentina Lithium & Energy’s chief executive officer, said in a statement. “With Rio Tinto’s world-class Rincon project as our direct neighbour and a strong offtake partnership with Stellantis, we are uniquely positioned to advance Rincon West rapidly and responsibly. This foundation allows us to leverage both strategic infrastructure and commercial synergies as we move towards the next phase of development.”
“As we advance preliminary economic assessment studies and evaluate advanced extraction technologies, our long-term focus remains crystal clear: To build a scalable, high-value lithium operation that generates sustainable returns for our shareholders,” Cacos added. “This initial resource provides a solid foundation on which we intend to expand the resource base. The exploration team will be carefully evaluating drilling below the current mineral resource, where expansion potential has been identified as the current mineral resource is open to depth. Together with our other highly prospective properties at Pocitos, Antofalla and Incahuasi, our company’s assets create a strong growth pipeline that will allow us to deepen strategic partnerships and accelerate development, potentially positioning Argentina Lithium as a key future supplier to the global EV and battery markets.”
About Argentina Lithium & Energy
Argentina Lithium & Energy is acquiring and developing high-quality lithium projects in Argentina to capitalize on increasing battery sector demand. Its portfolio includes four projects covering over 67,000 hectares in Argentina’s Lithium Triangle, which are in the hands of a leadership team with a long history of success in the country’s resource sector. The company is a member of the Grosso Group, a pioneer in Argentinian resource exploration since 1993.
Argentina Lithium stock (TSXV:LIT) is down by 4 per cent on the news trading at C$0.12 as of 11:11 am ET. The stock has given back 33.33 per cent year-over-year but remains up by 9.09 per cent since 2020.
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