Arena Minerals (TSXV: AN) continues to get closer with that of Lithium Americas (TSX: LAC). The duo this morning indicated that they will be entering a collaboration agreement focused on the optimization of the Pastos Grandes Basin, where both firms current have projects.
Referred to as the Pastos Grandes Technical Collaboration Agreement by Arena, the focus of the arrangement is “optimization of the production profile” of the basin. Arena currently operates the Sal de la Puna project within the basin, which is adjacent to Lithium Americas’ Pastos Grandes project.
The agreement will see a technical committee formed between the two firms, with each side to appoint three members. The duo is to collaborate on developing optimal processing tech for the region, developing a resource model for the entire basin, developing a brine production model, and coordination for presentations and reports to the mining, environmental and water authorities in the region.
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Data to be shared includes drilling data, environmental baseline data, sampling data, processing methods and current extraction models for the region. Further, in a sign that the two firms are continuing to get closer yet, common use of infrastructure is also to occur going forward, including pilot pond facilities, an on site lab, a pilot carbonate conversion plant and camp infrastructure.
Notably, Lithium Americas currently has a roughly 18.0% stake in Arena Minerals, as of a November 2021 filing. The stake amounts to 66.3 million shares, with current warrants held increasing that stake to 22.5% on a partially diluted basis.
Arena Minerals last traded at $0.49 on the TSX Venture.
Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
