Argentina’s surroundings and mining authority in Catamarca province has given Neo Lithium (TSXV: NLC; US-OTC: NTTHF) the mandatory clearance it wants for the development and operation of its Tres Quebradas (3Q) lithium brine mining challenge, the corporate stated.
The allow satisfies one of many last circumstances China’s Zijin Mining wanted to amass the junior exploration firm.
Zijin agreed to amass all of Neo Lithium’s excellent shares for $6.50 per share in money in October 2021. In December, Neo Lithium’s shareholders authorized the transaction at a particular assembly.
“Zijin is within the means of acquiring approval for the transaction from related authorities within the Folks’s Republic of China,” Neo Lithium said in a press launch.
The 35,000-hectare 3Q challenge has measured and indicated sources of 5.3 million tonnes LCE at a mean grade of 636 mg/l lithium.
A feasibility examine accomplished in October forecast a mine life of fifty years with common annual manufacturing within the first 20 years of 20,000 tonnes of battery grade LCE.
At an 8% low cost price, the challenge would generate a post-tax internet current worth (NPV) of US$1.13 billion and a post-tax inner price of return (IRR) of 39.5%.
At presstime, Neo Lithium was buying and selling at $6.40 per share inside a 52-week buying and selling vary of $1.92 and $6.45. The corporate has 141.3 million frequent shares excellent for a market cap of $904.6 million.