SANTIAGO – New Energy Metals Corp. (TSXV: ENRG) has entered into an option agreement to acquire a lithium project in the Atacama Salar district of Chile.
The Canadian company says it can earn a 100% interest in the project through cash and share payments.
The Atacama lithium project concessions cover an area of approximately 66,000 hectares, and New Energy says the proximity to existing production indicates exploration potential.
“We are excited with the opportunity to acquire a project in a region recognized as having the world’s highest-grade and largest producing lithium brine salt flat,” says Grant Ewing, president and chief executive officer. “This opportunity is viewed as a strategic acquisition by the company as it believes that potential value creation opportunities could arise in the future as a result of the transaction.”
The Atacama Salar hosts a significant portion of the world’s known lithium reserves and produces around one-third of global lithium output from two production facilities operated by Sociedad Quimica y Minera and Rockwood Lithium (Albemarle).