The Argentinian government made a surprise announcement earlier this month with an up-and-coming lithium explorer, Portofino Resources (TSXV: POR)(OTCQB: PFFOF). The company, which already owns the promising Yergo lithium brine project, now has access to multiple potential tier-1 lithium projects at its disposal, multiplying its lithium footprint in the country.
Portofino signed a memorandum of understanding (MOU) with state-owned mining company RESMA (Energy & Mining Resources of Salta province). The deal gives Portofino the right to work on, and the option to acquire, a majority stake in multiple promising lithium projects in the Salta province. This includes receipt of a large portion of the proceeds should a project be sold.
If exercised, these properties would multiply Portofino’s lithium footprint by a staggering 6.5 times from its current position. For a junior explorer like Portofino, this offer speaks volumes about the confidence Argentina has in the company’s management and exploration team.
With one swipe of a pen, Portofino has gone from a single, promising project, to perhaps becoming the next big player in the Argentinian lithium sector.
Portofino Now Has the Rights to over 30,000 Hectares of Prime Lithium Territory
The agreement gives Portofino the option to acquire a majority interest in multiple mining concessions across Salta province.
The Salta concession areas represent over 27,000 hectares of land, spread across five promising project areas. These areas are located in the heart of the Argentine Lithium Triangle, and are adjacent to multiple, existing world-class lithium development and producing projects.