The project comprises 23 concessions for a total of 2,438 hectares and is located in Region III, northern Chile, 193 km east of the regional capital city of Copiapo.

According to a 2010 technical report, it has an inferred resource of 512,960 tonnes of lithium carbonate equivalent and 4,223,123 tonnes of potassium chloride equivalent.

Wealth Minerals said in a statement: “Laguna Verde is in a similar geological setting to other lithium-bearing salars in Chile in that it is in a closed basin, surrounded by volcanic cones. The difference is that inflow of lithium-enriched brine is sufficient to maintain standing water.”

Subject to satisfactory completion of due diligence, Wealth Chile and the sellers will enter into and execute a formal property option agreement.

Under the terms of the agreement, Wealth Chile will pay $5m in cash and deliver 7 million common shares to the sellers of the concession.

The company said: “During the Option period, Wealth Chile will be responsible for maintaining the Concessions in good standing, and paying all fees and assessments, and taking such other steps, required in order to do so.”

Wealth Minerals also announced that it has arranged a non-brokered private placement of up to 909,090 common shares of the company.

It will use the proceeds from the placement to fund the Laguna Verde acquisition.

With interests in Canada, Mexico, Peru and Chile, Wealth Minerals’ main focus is the acquisition of lithium projects in South America.

Image: Laguna Verde project area. Photo courtesy of Wealth Minerals.