Mineral exploration and project development company Pursuit Minerals (ASX:PUR) has signed a binding agreement to acquire a lithium carbonate pilot plant in Salta, Argentina.
On 5 May 2023, the company entered into a 90-day option agreement to acquire 100% of the pilot plant for a consideration of US$365,000. Settlement of this acquisition is subject to Pursuit being satisfied with its due diligence enquiries, and entry into transaction documentation.
The company reports the purchase consideration is ‘substantially’ less than the cost of replacement.
Pursuit says it’s primary focus and principal stage one production milestone is to produce consistent technical and battery grade lithium carbonate equivalent (LCE) production for ongoing operations, while also confirming the chemical engineering and block flow processing is efficient, cost effective, and scalable for all development stages of the Rio Grande Sur Project.
Once operations at the plant begin, the company aims to produce 100 tonnes per annum of LCE. Throughout this development stage, Pursuit will additionally evaluate the circuit for lithium hydroxide production from lithium carbonate in line with growing market demand for both products.
Pursuit reports it is confident that historical process testworks, along with concurrent engineering studies will form the basis to optimise the production process for Rio Grande brines for market acceptable lithium products along with subsequent initial commercial sales of lithium carbonate products as a result.
While the plant will remain in its current location, Pursuit is investigating moving the plant to the Rio Grande Salar in conjunction with constructing evaporation ponds following the initial drilling campaign targeted for the second half of 2023.
Commenting on the acquisition, Pursuit Chief Operating Officer (COO) Aaron Revelle says: “With the acquisition of the pilot plant, Pursuit Minerals confirms its position as the newest pre-eminent lithium development company in Argentina.
“The plant will allow Pursuit to begin immediately developing a chemical process pathway that is efficient and scalable for the Rio Grande Sur Project, fast tracking production”
The plant will allow Pursuit to begin immediately developing a chemical process pathway that is efficient and scalable for the Rio Grande Sur Project, fast tracking production.”
Pursuit reports the pilot plant was originally constructed in 2013 and was purchased by the vendor for about US$3.6 million. In previous operations, the plant achieved a run rate of over 750kg per day (100tpa nameplate capacity) and employed 33 people for a period of 12 months.
Pursuit Minerals is an ASX-listed mineral exploration company focused on the Warrior PGE-Nickel-Copper and Gladiator Gold projects in Western Australia.
Along with its projects in Western Australia, the company also holds 5 tenements which collectively comprise the Rio Grande Sur Project near Salta, Argentina.
The project, which is considered prospective for lithium, covers about 9,223 hectares across the Maria Magdalena, Isabel Segunda, Sal Rio 01, Sal Rio 02, and Mito tenements.
Images: Pursuit Minerals Ltd
