SYDNEY, AUSTRALIA: Kogi Iron Limited (ASX: KFE), to be renamed Macro Metals Ltd, has entered into a binding option term sheet to acquire 100% of the Salar Verde Lithium brine-clay project in Chile.
Non-Executive Chairman, Peter Huljich commented: “The Salar Verde Lithium Project represents an exciting opportunity for the company in terms of diversification of commodity exposure into an integral part of the electrical storage market.
Chile has an extensive mining history and is globally renowned as a leader in lithium brine extraction and processing. The vendor consortium of the Salar Verde Project have an extensive track record of successful project development in Chile and abroad and we look forward to leveraging their skillset and operational experience.
With a predicted 1,500,000 tonne Lithium Carbonate Equivalent shortage in the Lithium market by 2030 the opportunity to gain exposure to a project with the potential to be a large high grade brine and clay lithium project which has the potential to completely transform the Company and enable it to be a key contributor to the global decarbonisation revolution which is currently underway.
The Salar Verde Project has drill proven brine and clay mineralisation, noting that less than 5% of the Salar Verde Project has been explored to date. Our aim through the due diligence phase will be to work with the vendors towards defining a suitable geophysical survey program to be implemented upon completion to assess the depth of the basin and conductive horizons representing prospective brine targets. Drill tendering will also be conducted so that exploration can rapidly advance across the Salar Verde Project.
The capital raising activity that the company has recently completed was strongly supported by both existing shareholders and sophisticated investors, which provides us with adequate funding to conduct the geophysical program and initial drilling across the Salar Verde Project.”