Argentina Lithium & Energy Corp. (LIT.V)

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Company description

Argentina Lithium & Energy is an exploration company, focusing on its lithium exploration efforts on northern Argentina, with 100% control of more than 22,000 hectares of mining tenures in the Catamarca and Salta provinces. The company is a member of the Grosso Group, a resource management group that has successfully pioneered exploration in Argentina since 1993. CEO Nikolaos Cacos is heading the team, a familiar name within the Grosso Group as he is also the President and CEO of Blue Sky Uranium, and VP Corporate Development/Director of Golden Arrow Resources, two other companies of the Grosso Group which both operate largely in Argentina as well.

The company owns two projects, the Incahuasi and Antofalla projects. Both projects are located in the socalled Lithium Triangle, an area incorporating parts of Chile, Bolivia and Northern Argentina, which produces about half of the world’s lithium, most of it through salt lake brine operations, and hosts about 60% of known lithium reserves. Argentina itself produces about 10% of world production (2020 figures), making it a top five global producer. 

The company believes the two projects are underexplored, and particularly in case of their flagship Incahuasi project, supports conditions for quality brines at depth. Both projects are located at high altitudes in extremely dry environments, which are ideal for brine operations. The Antofalla project is part of the Antofalla salar (salt lake in Spanish), which has been explored by for example major lithium producer Albemarle. Their reported grades from the salar in the past include 350 mg/l lithium and 6,400 mg/l potash.  

Argentina Lithium completed some exploration in 2018 at Incahuasi with modest, non-economic results (on average 109mg/L Lithium but equally as important high magnesium values: on average 13,689mg/L Magnesium, which increase recovery costs), and basically shelved their efforts on both projects since then due to crashing lithium product prices, and is looking to revitalize things again, as lithium sentiment and pricing is improving strongly on the back of increasing EV initiatives, and success by for example EV car producer Tesla, shaping the paradigm shift from fossil fuels to renewable energy, EV and grid storage.

As a consequence, the company closed a C$0.764M oversubscribed financing on April 14, 2021. The common share price is C$0.09, the full warrant is exercisable at C$0.15, 3 years from the date of issue. Proceeds of the financing will be used for general working capital. Notwithstanding this, management is anticipating to resume exploration activities during the second half of this year, and has currently identified a number of lithium opportunities within the Triangle, and is working hard to secure them.

Share price Argentina Lithium & Energy Corp.: