Pursuit Minerals Ltd (ASX: PUR) has “fast tracked” its path to production with the acquisition of a Lithium Carbonate Pilot Plant located in the city of Salta, Argentina.
Highlights
- Binding Agreement to acquire a Lithium Carbonate Pilot Plant.
- The Pilot Plant has historically produced technical (~99.0% purity) and battery grade (99.5%+ purity) Lithium Carbonate.
- Total Consideration US$365,000 subject to conditions precedent and satisfaction of due diligence by Pursuit. Purchase consideration substantially less than cost of replacement.
With the acquisition of the Pilot Plant, Pursuit Minerals confirms its position as the newest pre-eminent Lithium development company in Argentina,” COO, Aaron Revelle, said.
“The plant will allow Pursuit to begin immediately developing a chemical process pathway that is efficient and scalable for the Rio Grande Sur Project, fast tracking production.”
Background to the Rio Grande Sur Project
Pursuit holds five tenements collectively known as the Rio Grande Sur Project that are prospective for lithium located near Salta, Argentina. The five tenements cover approximately 9,233 hectares.
Pilot Plant – Fast Track to Production
The plant was originally constructed in 2013 and purchased by the vendor at a cost of ~US$3.6 million. When in previous operation the plant achieved a run rate of 750kg/d+ / 100tpa nameplate capacity and employed 33 people for a period of 12 months.
Pursuit’s primary focus and principal Stage 1 production milestone is to produce consistent technical and battery grade Lithium Carbonate Equivalent (LCE) production for on-going operations, whilst also confirming the chemical engineering and block flow process is efficient, cost effective and scalable for all development stages of the Rio Grande Sur Project. The Pilot Plant has a nameplate production capacity of 100 tonnes of Lithium Carbonate per annum. Throughout this development stage, the company will additionally evaluate a circuit for Lithium Hydroxide production from Lithium Carbonate in line with growing market demand for both products.
The company is confident that historical process test works, along with concurrent engineering studies will form the basis to optimise the production process for Rio Grande brines for market acceptable Lithium products along with subsequent initial commercial sales of Lithium Carbonate products as a result.
Whilst the plant will remain in its current location, the company will also investigate moving this plant to the Rio Grande Salar in conjunction with construction of evaporation ponds following the initial drilling campaign targeted for the second half of 2023.
