08:59 AM EDT, 06/17/2024 (MT Newswires) -- American Salars Lithium ( ASALF ) said on Monday that it will buy the Pocitos 1 lithium project in Argentina from Recharge Resources ( RECHF ) .

The property hosts inferred resources of 760,000 tonnes of lithium carbonate equivalent based on a December 2023 NI 43-101 mineral resource estimate.

"We look forward to working with our technical team to update the NI 43-101 mineral resource estimate to reflect our Pocitos 1 concession which represents approximately 60% of the combined ground used in the existing mineral resource estimate and hosts all of the drilling to date," CEO and Director R. Nick Horsley said.

Under the terms, American Salars will issue 5 million shares and an outstanding tax liability of the vendor estimated at about US$250,000, as well as A$80,000 payable to WSP Australia Pty. Ltd., which prepared a resource estimate for the project.

American Salars will also issue 2.5 million bonus warrants, with each warrant exercisable at $0.75 per share for five years.

The property is subject to a 2.5% net smelter royalty, and American Salars can purchase 1.5% of the royalty for $1.5 million.

American Salars' share price fell 2.9% last Friday to $0.33.