- Advance Gold (AAX) has acquired a series of 13 lithium-potassium-boron prospective salars in central Mexico
- The acquisition was made through its wholly owned Mexican subsidiary
- The company is also acquiring a pilot plant and patented extraction method as part of the deal
- Advance Gold will issue 5 million shares as payment
- Advance Gold is up 3.85 per cent on the day, with shares of the company trading at $0.14 at 9:46 a.m. EST
Advance Gold (AAX) has acquired a series of 13 lithium-potassium-boron prospective salars in central Mexico.
The acquisition was made through its wholly owned Mexican subsidiary.
The company is also acquiring a pilot plant designed and built under the guidance of an expert in mineral recovery, and a patented extraction method as part of the deal.
Under the terms of the agreement, Advance Gold has the right to purchase a 90 per cent interest in the 13 lithium-potassium-boron prospective salars from Hot Spring Mining, a private Mexican company.
Hot Spring will retain a 10 per cent carried interest through to production that will convert to a participating interest upon commercial production.
Upon approval of the deal, Advance Gold will issue 5 million shares as payment. It will also purchase the test plant build by Hot Spring for USD $2 million within two years.
“We are excited to diversify our portfolio of projects with a group of lithium-potassium-boron prospective salars in central Mexico. There is a strong investor appetite for lithium projects due to the quest for alternative energy sources, with the new Biden administration in America, and worldwide.
What makes the salars impressive is that Dr. Roberto Perez Garibay, an expert in mineral recovery, has done studies to test material from salars in central Mexico. He concluded that they are amenable to magnetic and heavy mineral separation, creating a concentrate that reacts very favourably to common leaching methods for lithium recovery over short periods of time measured in hours with high recoveries,” said Advance Gold President and CEO Allan Barry Laboucan.
“In addition, as part of the transaction, a test plant will be purchased which was built under the guidance of Dr. Roberto Perez Garibay. The first order of business will be to begin bulk sampling of material from our salars, putting it through the test plant to further understand the economics of magnetic and heavy mineral separation and leaching characteristics.
These salars give us the potential for near-term lithium production and complement our efforts in precious metals exploration. Having new battery metal projects gives the Company options, possibly spinning it off to shareholders in the future.”
Advance Gold is a junior exploration company focused on acquiring and exploring mineral properties containing precious metals.
Advance Gold is up 3.85 per cent on the day, with shares of the company trading at $0.14 at 9:46 a.m. EST.
