Lithium Chile Expands into Argentina with 850 Mg/L+ Lithium Property with Agreement to Earn into the 233 Sq Km Salar de Arizaro
LITHIUM CHILE EXPANDS INTO ARGENTINA WITH 850 MG/L+ LITHIUM PROPERTY
WITH AGREEMENT TO EARN INTO THE 233 SQ KM SALAR De ARIZARO
TSX Venture Exchange: LITH For Immediate Release
OTC-BB: LTMCF
CALGARY, ALBERTA, MAY 17, 2021 – Lithium Chile Inc. (“Lithium Chile” or the “ Company”) is
pleased to announce that it has added an Argentinian lithium salar property to its portfolio by
entering into a binding Letter of Intent ( “LOI”) with SMG S.R.L. of Jujuy, Argentina . The LOI
enables Lithium Chile to earn up to an 80% interest in the 233 Sq Km Salar De Arizaro located in
Salta Province , Argentina. The LOI gives Lithium Chile the opportunity to earn a large and
dominant land position in the center of the largest undeveloped salar in Argentina.
HIGHLIGHTS
• 850 mg/l lithium grades already established from a three-hole drill program conducted
in 2019;
• Arizaro exploration target covers 233 Sq Km;
• Surface area of Arizaro prospect larger than the Salar de Pastos Grande (Millennial
Lithium) and the Salar de Pozuelos (Litica Project);
• Lithium Chile will be one of the only junior companies with active programs in two o f
the lithium triangle countries.
The 2019 three-hole exploration program identified a high-grade lithium zone in the aquifer. The
size and potential of the Salar De Arizaro is well known. Major players Eramine (Eramet SA) and
LITICA (formerly LSC Lithium) are neighbors in the salar.
Lithium Chile views the Arizaro project as transformational for the Company . Management
believes that because such strong assay results have already been returned, the project will
enable Lithium Chile to rapidly transition from an exploration stage company to a production
stage company.
The LOI contemplates that Lithium Chile will earn a 60% interest in the Arizaro prospect over a
term of three years in stages. The first stage involves the drilling and production testing of a well
to be completed in the first six months at an estimated cost of up to US $800,000 , and includes
payments to the vendors totaling US $300,000. Lithium Chile will be able to analyze the results
of the production test, including flow rates and lithium grades , and thereafter have a 180-day
period to exercise its option to proceed to the second stage involving further property
expenditures totaling US $6,000,000 over 2.5 years which will earn Lithium Chile a 60% interest
in the entire project.
Lithium Chile will be entitled to acquire an additional 20% interest in the entire project by
completing a bankable feasibility study after the second stage such that total earning will be 80
percent.
Jose de Castro Alem, a Lithium Chile Director and a resident of Salta, Argentina , will oversee the
project on Lithium Chile’s behalf.
Mr. Castro Alem is a Chemical Engineer with over 25 years of experience in lithium brine projects,
primarily in Argentina. Jose began his career with Livent in Argentina and was one of the early
2
founders of Orocobre. With Orocobre he was involved from the early exploration phases through
to the construction of both evaporation ponds and the lithium production facility. He was also
instrumental in the early exploration efforts by NRG Metals Inc. which culminated in a discovery
and preliminary resource estimate of over 500,000 tons of lithium
Steve Cochrane, President and CEO of Lithium Chile commented, “We are extremely pleased to
have entered into this agreement because it affords us the opportunity to potentially transition
from a pure exploration company to th at of a producing company . We believe that this
opportunity has the realistic potential to be commercially viable for production and enhances
our Chilean opportunities by advancing our plans by a number of years. This opportunity exposes
our shareholders to an exp anding, geographically diverse portfolio in two of the prominent
countries that form the prolific “Lithium Triangle.”
Formal agreements are expected to be completed within 60 days and are subject to regulatory
approval including, but not limited to, the approval of the TSX Venture Exchange.
Qualified Person
Mr. Gabriel Paganini , Mining Eng. , qualified person registered in AusIMM under Lic. 317013
within the meaning of JORC 2012, has reviewed the contents of this news release.
About Lithium Chile
Lithium Chile is advancing a lithium property portfolio consisting of 71,900 hectares covering
sections of 10 salars and two laguna complexes in Chile and now, 23,300 hectares in Argentina.
Lithium Chile also owns 5 properties that are prospective for gold, silver and copper. Exploration
efforts are continuing on Lithium Chile’s Carmona gold/silver/copper property which lies in the
heart of the Chilean mega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-
BB under the symbol “LTMCF”.
To find out more about Lithium Chile Inc., please contact Steven Cochrane, President and CEO
via email: [email protected] or alternately, Jose de Castro Alem Manager of Lithium
Operations email [email protected].
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
NOT FOR RELEASE IN THE UNITED STATES OF AMERICA
Forward Looking Statements
This news release may contain certain forward -looking information and forward -looking statements within the meaning of
applicable securities legislation (collectively "forward -looking statements"). Generally, forward -looking information can be
identified by the use of forward -looking terminology such as "expects", "believes", "aims to", "plans to" or "intends to" or
variations of such words and phrases or statements that certain actions, events or results "will" occur. In particular, this news
release contains forward-looking statements relating to entering into formal agreements, the Company earning an interest in the
Arizaro prospect, the drilling of a production well.
You are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors an d
assumptions include, but are not limited to: the general stability of the economic and political environment in which the Company
operates; the timely receipt of required regulatory approvals; the ability of the Company to obtain future financing on acceptable
terms; currency, exchange and interest rates; operating costs; the success the Company will have in explorin g its prospects and
the results from such prospects. Accordingly, readers should not place undue reliance on forward -looking statements. The
Company does not undertake to update any forward-looking statements herein, except as required by applicable securities laws.
All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.