Arena Minerals (TSXV: AN) has acquired privately held Antofalla Minerals for US$400,000 in cash and 10 million common shares.
Antofalla Minerals' flagship property is its 4,000-hectare Antofalla lithium brine project in Argentina's Salar de Antofalla. The salar straddles the provinces of Catamarca and Salta in northwestern Argentina.
The three claims cover the central portion of the Salar de Antofalla and are immediately south of Albemarle Corporation's (NYSE: ALB) Antofalla project.
Antofalla Minerals also owns lithium claims covering 290 hectares in the Hombre Muerto salar in Argentina's Catamarca province, and an option over 2,000 hectares in the Pocitos salars in Salta province. There is also a claim, which is disputed in the courts, on an additional 2,000 hectares in the Antofalla salar.
The acquisition gives Arena a foothold in the 'Lithium Triangle' of Argentina, Chile and Bolivia, which Arena estimates makes up more than 40% of the world's lithium production.
Arena notes that the Antofalla brine is one of the only brines in Argentina "with a unique chemistry paired with elevated lithium values, allowing for development as either a stand-alone project with a potential low cost of production as a lithium-rich feed for more conventional projects within the country."
Elsewhere in South America, Arena owns 80% of the Atacama copper property in Chile's Antofagasta region. The property consists of two projects covering about 7,000 hectares.
In September, Arena raised $2.3 million in private placement financing at 5 ? per unit, with each unit consisting of one common share and one common share purchase warrant. Each purchase warrant can be exercised at 10 ? over a 36-month period.
At press time in Toronto, Arena's shares were trading at 7.5 ?. The company has 132 million common shares outstanding for a market cap of $9.95 million.