Solis Minerals (ASX:SLM) has completed the acquisition of the Brazil Lithium Project located in Minas Gerais, Brazil from Rio Tinto (ASX:RIO) subsidiary Desenvolvimentos Minerais for a total purchase price of US$500,000 ($696,809).
The consideration will be paid on the signing of binding agreements, with Rio Tinto retaining a 1.75% net smelter return royalty for the project area.
Solis will conduct its due diligence at the project over a 14-day period, with legal ownership of concessions to be transferred upon completion.
The project is located adjacent to PLS Group’s (ASX:PLS) lithium tenure. Solis and PLS have signed a collaboration agreement, allowing PLS a participation first right for any future transaction regarding the tenements.
PLS is Solis’ largest shareholder with a 5.1% stake.
CEO Mitch Thomas says the acquired project provides Solis with “substantial and strategic foothold in one of the world’s emerging hard rock lithium districts”, close to previous exploration activities for the leadership team.
“This high potential asset complements our copper portfolio and positions us with a diversified pipeline of high-impact energy metal opportunities,” Thomas says.
Chairman Chris Gale says the acquisition allows Solis to “potentially provide its shareholders significant upside in the event of a lithium discovery”.
“The timing of the acquisition is outstanding as the lithium price continues to rise with supply weakening and demand strengthening,” Gale says.
“I have a sense of deja vu due to the Solis Minerals management team having previously made a significant lithium discovery in the same region.”
Previous exploration activities at the asset indicate ‘significant’ geochemical anomalies with auger and soil samples exceeding 330 parts per million lithium.
This program, conducted in Rio Tinto’s holding, returned samples higher than the previous vendor.
Solis will target the Mandacaru and Campo Grande prospects, which are suitable for immediate drill testing with well-defined geochemical and structural signatures.
Solis Minerals is a mineral explorer focused on uncovering discoveries prospective for copper mineralisation in South America.
Write to Maddison Elliott at Mining.com.au
Images: Solis Minerals
