American Salars Lithium (CSE:USLI) has entered into a share exchange agreement to acquire 100% of K20 Minerals, which owns the Lake Throssell Sulphate of Potash (SOP) Project in Western Australia.
K20 Minerals holds exploration licence E38/3065, covering approximately 296km² located 180km northeast of Laverton.
Under the agreement, American Salars will issue 5.1 million common shares to K20 shareholders across two equal tranches. The first 2.55 million shares will be issued at closing subject to a six-month escrow. The remaining 2.55 million shares will be issued 14 months post-closing under a four-month escrow.
The second tranche is expected to result in merchant banking group Cronin Exploration becoming a control person with a 20.9% stake, subject to potential Canadian Securities Exchange (CSE) shareholder approval.
The Lake Throssell Project hosts a historical February 2023 JORC mineral resource estimate containing 13.3 million tonnes (Mt) SOP across indicated and inferred categories. The indicated portion totals 8.0Mt at 10.5kg/m³, while the inferred resource holds 5.3Mt at 10.8kg/m³.
The historical estimate converted 3.79Mt from inferred to indicated, representing a 90% increase in indicated resources. It also contains a historical exploration target of 2.3Mt to 9.0Mt of additional SOP at grades between 9.0–9.9kg/m³.
CEO Nick Horsley says Lake Throssell represents a ‘significant’ addition to American Salars’ portfolio.
“The historical JORC estimate highlights a large-scale SOP brine system with meaningful indicated, inferred resources and significant exploration upside potential,” Horsley says.
American Salars notes the historical estimate requires validation under NI 43-101 standards and is not currently treating it as a current mineral resource.
Following completion, the company plans to evaluate confirmatory sampling, drilling, metallurgical testwork, tenure, environmental, and permitting requirements.
The transaction remains subject to due diligence and regulatory approvals. American Salars will assume annual underlying claim fees estimated at $87,000, and the project is subject to a 3% gross overriding royalty.
American Salars Lithium is an explorer and developer focused on high-value battery metals projects for the advancing electric vehicle market.
Write to Paula Fabe at Mining.com.au
Images: American Salars Lithium
