| Dear Fellow Investor,
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| Why did the world’s fourth-largest automaker pony up US$90 million in Argentine-currency-equivalent for 19.9% of the subsidiary of Argentina Lithium & Energy (LIT.V; PNXLF.OTC)?
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| Because Argentina Lithium controls key brine projects in the country’s corner of the Lithium Triangle.
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| As you’re about to see, LIT has projects near some of the most promising lithium projects in Argentina, projects controlled by majors in the lithium and mining sectors.
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| Read on to learn what Stellantis has acted on….
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| Who Is Stellantis NV?
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| According to Wikipedia, Stellantis (www.stellantis.com) is the fourth-largest car manufacturer globally, based on 2022 sales, behind Toyota, VW and Hyundai. It is larger than Tesla, Ford and GM.
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| Stellantis is distinct. It is the globally diversified auto maker. It controls no less than 16 brands of cars and trucks.
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| In the U.S., there’s Jeep, Dodge, Chrysler, Ram trucks and Mopar auto parts.
Based in France, there’s Citroen, Peugeot and DS Automobiles. Based in Italy, there’s Fiat, Fiat Professional, Alfa Romeo, Lancia, Abarth and Maserati. In the UK, there’s Vauxhall. Based in Germany is Opel.
Importantly, the group targets producing and selling 45 electric vehicle models in 2024 — rising to 75 in 2030 — based on four EV platforms which are addressed on their website as part of the company’s global plan called Dare Forward 2030.
This demonstrates a serious requirement for lithium and lithium-ion batteries.
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| What Does Stellantis See In Argentina Lithium?
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| The potential to produce what they need most — lithium.
Argentina Lithium controls four lithium brine projects in the Lithium Triangle in northwestern Argentina.
Another key advantage is that the company is well positioned to make substantial progress during the remainder of this year and into next year.
Argentina Lithium’s two key projects are its discovery at the Rincon salar, which adjoins the large and active position held by Rio Tinto PLC (RIO.L, RIO.NYSE www.riotinto.com), and its project on the Antofalla salar, sited next to the Albemarle Corp.(NYSE: ALB, [http://www.albemarle.com%3c/span%3e%3c/a]www.albemarle.com) project in the area and where LIT has near-term exploration plans.
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| Rincon Salar:
Two Near-Term Lithium Producers
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| The Rincon salar is an exciting basin to follow because, in addition to LIT’s exploration properties, there are two other major lithium projects at the development stage: Argosy Minerals Limited (ASX:AGY, [http://www.argosyminerals.com.au%3c/a]www.argosyminerals.com.au) to the south, and the biggest player in the salar, Rio Tinto.
LIT is actively exploring to expand their discovery at Rincon West, adjacent to the west and north of Rio Tinto.
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| The LIT project includes 3,742 hectares, or the equivalent of 3.6 miles by 3.6 miles — plenty of room for a good-sized resource and operation.
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| All nine drill holes by Argentina Lithium at Rincon West in the recent campaign sampled lithium-enriched brines.
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| Click image to enlarge
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| Drilling focused on the central part of the property where excellent brine grades were returned over broad intervals in the majority of holes.
Many of these lithium grades are similar to those reported in the past for Rio Tinto’s Rincon property (Montgomery & Associates, July 26, 2021, the last resource estimate before Rio’s acquisition)
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| Prospective Expansion At Rincon West
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| Argentina Lithium has begun the modelling work for a potential mineral resource estimate for this first area based on these positive results.
Additionally, the company is now on hole two of five planned holes on the adjacent Rinconcita II block on the east side of Rincon West.
It also plans to drill the Paso de Sico block lying adjacent to Rio Tinto on the north. Both blocks are also believed to be prospective for the discovery of lithium brines.
Please note that proximity to other mining projects does not provide any assurance with respect to making similar discoveries.
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| Rio’s Plan Of Operation At Rincon
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| Rio Tinto is the world’s second-largest mining company as measured by market capitalization.
Rio controls the core of the Rincon salar, acquired from Rincon Mining for $825 million in March 2021. It is their largest and most advanced lithium project globally. According to miningweekly.com, Rio Tinto has constructed and is operating a pilot plant on site.
It is aggressively drilling to expand the resource and has started construction of a 3,000-tonne/year starter plant to produce lithium carbonate commencing in 2024.
Its plan is to have the starter plant serve as a pilot for a much larger, 50,000-tonne/year plant there, a substantial enterprise.
Rio Tinto also announced in July 2022 that it has signed a Memorandum of Understanding with Ford Motor Company for delivery of lithium carbonate from the Rincon salar.
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| LIT’s Activity Adjoining
Albemarle At The Antofalla Salar
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| The Antofalla salar is north-south oriented, approximately 90 miles long, and is located 15 miles west of the Hombre Muerto salar, currently Argentina’s largest lithium-producing area.
The Antofalla Project, in the Antofalla salar, is controlled by Albemarle, the world’s second-largest lithium producer.
Albemarle has stated publicly that the company controls one of the largest lithium resources in Argentina at Antofalla in their news release dated September 12, 2016.
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| Here, Argentina Lithium controls Antofalla North, covering the northern extension of the salar basin adjoining Albemarle’s project. The property covers 10,050 hectares, equivalent to six miles by six miles, a very substantial area.
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| Antofalla North is anticipated to be permitted for exploration programs in the near term, which will be followed quickly by aggressive exploration programs including ground geophysics and drilling, according to management.
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| Additional Concessions
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| Argentina Lithium also controls extensive mineral rights at the Pocitos salar covering approximately 20% of the basin, located south of Rincon — and the Incahuasi salar in Catamarca province — covering approximately 90% of the salar.
Exploration at these project areas is planned to come next.
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| Management Has Advantages In Argentina
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| Argentina Lithium has a distinct advantage over other explorers in Argentina.
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| The company is a member of the Grosso Group, which has been actively exploring in Argentina for 30 years, since mineral exploration started there in 1993.
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| The Grosso Group has been involved in four major mineral discoveries in Argentina thus far. LIT’s CEO Nikolaos Cacos is also the Director and Vice President of Business Development for Grosso Group.
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| Close Attention Merited
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| In a recent interview with Northern Miner, Cacos said:
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| “Stellantis was intrigued by our projects because they are all well located and we were getting good results. They undertook extensive due diligence and brought in some of the world’s best experts that had helped advance other projects into production.
“They weren’t trying to squeeze us out. They want to help advance the projects and give access to funding. They’ve also said they will be available to raise financing for a production plant when the time comes.”
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| Again, Stellantis needs the lithium.
Argentina Lithium is on the move. Yet, despite the huge investment by Stellantis, the company’s share price is now only trading around the levels of 2021.
This is an exciting new beginning for Argentina Lithium. With the projects, tremendous funding and strong relations, this company is poised to deliver.
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| CLICK HERE
To Learn More about Argentina Lithium & Energy Corp.
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