Surge enters MoU to acquire Incahuasi lithium project in Chile
Vancouver-based Surge Exploration (TSX-V:SUR, OTCQB:SURJF) announced today that its wholly-owned subsidiary Surge Exploration Chile SpA is advancing negotiations to acquire the Incahuasi Lithium Project located in the Antofagasta region of northern Chile.
Surge has entered into an arm's length non-binding Memorandum of Understanding with Miguel Angel Perez Vargas for an option to acquire up to 100% of Incahuasi. For the deal to go through, Surge has to make certain cash and common share payments totaling $2.22 million and start the exploration phase immediately after the conclusion of the Option Agreement. The company also has to assure it will produce a geophysical survey and at least one drill hole completed within 24 months from the effective date.
Once Surge completes all these prerequisites and therefore owns the rights to the lithium mineral claims, the seller shall receive a 2% NSR in Incahuasi.
The project, which comprises 10 exploration concessions, extends for 2,300 hectares and sits atop the Incahuasi Salar. It is situated on the Chile/Argentina national border approximately 75 kilometres southeast from the Atacama Salar in Chile, well-known to be the world's largest and actively mined source of lithium with over 15% of the global supply contained within its boundaries.
According to the Canadian miner, within the Incahuasi Salar, lithium brines appear to exist near the surface, which results in potential lower costs of exploration.
"We are excited about the opportunity to earn a significant interest in a lithium concession located in the Lithium Triangle, the world’s most prolific lithium producing region with over 70% of the world’s lithium reserves," said Tim Fernback, Surge's President & CEO, in a media statement.