Solis Minerals pounces on acquisition of Jaguar Lithium Project in Brazil

Battery metals explorer Solis Minerals (ASX:SLM) has struck a binding option agreement to purchase the Jaguar Lithium Project in Bahia State, Brazil.

Speaking to Mining.com.au, Solis Minerals Executive Director Matthew Boyes says the US$3.9 million agreement represents an opportunity to move into a lithium province in Brazil that it considers to have ‘massive potential’.

Under the deal, the company will acquire 100% of the tenements 871427/2006 and 872376/2021 from the vendors, Marico Mineracao Itda and Igramar Industria de Ganitos e Marmores, through Solis’ subsidiary, Onca Mineracao.

Solis will be required to pay an upfront option fee of US$300,000, which will grant Onca a 90-day period to conduct due diligence on the project. Prior to the expiry of the due diligence period and at the election of Onca, Solis will pay US$700,000 to exercise the option and acquire a 100% interest in the project.

Within 12 months of paying the option exercise fee, Solis will pay a deferred consideration of US$2.9 million and will issue 3 million performance rights simultaneously with the payment of the option exercise fee.

These performance rights will convert into fully paid Solis shares on a 1 for 1 basis after an inferred mineral resource of 10 million tonnes @ 1% Li2O or greater is delineated within 24 months of issuing the performance rights.

Boyes tells this news service that Brazil is quickly becoming an epicentre of hard rock spodumene mining in the world of discovery and says the new project complements the company’s existing copper asset.

“We’ll be staying in the battery space, but we’re also bringing in assets that we think can add very material market cap and value to the company in a short period of time and give ourselves access to what we, or what I personally, think is probably the best market going around at the moment, which is the hard rock lithium space.”

Solis reports a series of surface samples were collected from the exposed portion of the Jaguar pegmatite within an artisanal open pit at the Jaguar project.

These samples were taken from the spodumene-rich pegmatite quartz core primarily to confirm the grade of the visible spodumene mineralisation. All samples were assayed at SGS GEOSOL Laboratories Brazil.

The company says a field campaign will begin in the coming weeks to complete systematic geochemical sampling of all the known outcrops plus mapping and target generation for follow-up drill programs. Additionally, Solis has secured a drill rig and plans to start drilling in June.

Boyes tells Mining.com.au this drilling program is a part of the company’s due diligence work.

“The first step for us is to ascertain exactly what’s there and to give us some indication of what the asset could be in the next 60 days. So that will probably give us time to drill 3-4 holes into it.

The first step for us is to ascertain exactly what’s there and to give us some indication of what the asset could be in the next 60 days”

At that point, we’ll have a better idea and be able to make a more informed decision on whether we want to proceed with the asset purchase, which most probably we would, and then we decide at that point how much of the drilling program we do for the next calendar year.”

Solis Minerals is a Latin American battery mineral-focused mining exploration company that recently acquired the Borborema Lithium Project in Brazil. In addition to Borborema, the company also holds 32,400 hectares of combined licences and applications of ‘highly prospective’ iron oxide copper-gold (IOCG) and porphyry copper projects in southwestern Peru.

Write to Harry Mulholland at Mining.com.au

Images: Solis Minerals
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.