Purickuta Exploitation Project

The Purickuta Project consists of 160 hectares and is one of a few "exploitation concessions" granted within the Salar de Atacama, home to approximately 37% of the world's Lithium production. The property is contained within an existing exploitation concession owned by Sociedad Quimica y Minera ("SQM"), and lies approximately 3 km north of the exploitation concession of CORFO (the Chilean Economic Development Agency). About 22 km southeast of the Purickuta Concession, both SQM and Albemarle Corp. have large-scale production facilities within the CORFO concession mentioned above. These two facilities collectively produce over 62,000 tonnes of Lithium Carbonate Equivalent annually and account for 100% of Chile's current lithium output.

Salar de Atacama is a salt flat encompassing 3,000 km2, being about 100 km long and 80 km wide. The salar possesses a very high grade of both lithium (1,840mg/l) and potassium (22,630mg/l). It has a high rate of evaporation (3,200mm per year) and extremely low annual rainfall (15mm average per year). These characteristics make Atacama's finished lithium carbonate easier and cheaper to produce than its peer group globally.

Chile's political, social, and economic macroclimate has been stable for decades, making it one of South America’s most prosperous nations. Chile is also home to many of the world’s largest and highest grade resources of lithium making the country well positioned to be the price setter for lithium in both rising and falling markets.

The Purickuta Project exhibits many highly desirable and key acquisition attributes, including:

  1. the appearance of both a low-cost resource definition opportunity and a near term production opportunity;
  2. the overall project size fits well within the capability of a junior company seeking to quickly define reserves and establish production facilities;
  3. the property is well situated within the Salar de Atacama, the highest-grade lithium salar in the world;
  4. within the Salar de Atacama, lithium brines exist within 140 feet of surface resulting in low costs of exploration and extraction;
  5. the Purickuta Concession lies relatively near existing pumping and solar evaporation installations;
  6. the Purickuta Concession is close to power, labour, communications, transportation and other infrastructure.

Structure of the LOI and subsequent Agreement

The proposed transaction to acquire an interest in the Project up to 60%, shall be effected by payment to Durus Copper of the amounts described below:

Date Cash Payment Share Issuance
Upon signing formal title opinion US $100,000
within five (5) business days of TSX Venture Exchange approval (the "Effective Date") US $300,000 5,000,000
6 months from the Effective Date US $2,000,000
12 months from the Effective Date or the date of the receipt of a positive preliminary economic assessment on the Property US $2,000,000
upon the completion of a positive feasibility report on the Property, at latest 18 months from the Effective Date US $2,000,000
upon receipt of a special lithium operation contract (the “CEOL”) regarding the Property US $2,000,000

Once LiCo has completed the foregoing conditions and as a result has exercised the option to acquire an initial 50% interest in the Purickuta Project (including the completion of the Work Commitment described below), and during a period not to exceed 12 months from the date the CEOL is executed, LiCo has an option to commence construction of a plant to achieve production at a minimum rate of 2,000 TPA or up to a maximum rate of 4,000 TPA. The Parties may agree to increase the production rate by mutual consent.

For the first US$10 million invested by LiCo in plant construction, LiCo will acquire an additional 10% interest in the Property from Durus Copper, to complete the acquisition of the 60% interest in the Purickuta Project.

Work Commitments

LiCo shall be required to complete the following under its “Work Commitment” obligations as follows:

  1. the receipt of an acceptable title opinion in regards to the Purickuta Project, as required for the first US$100,000 payment;
  2. the completion of a NI 43-101 compliant report;
  3. the Preliminary Economic Assessment;
  4. the Project Feasibility Study; and
  5. the procedure and application for the execution of the CEOL.

"We are excited about the opportunity to earn a significant interest in a lithium concession located in the world’s most prolific lithium brine deposit, Chile’s Salar de Atacama. Having two lithium giants, SQM and Albemarle, as neighbours in the salar gives us confidence that we will be able to develop this concession alongside our Chilean partner, Durus Copper, for the benefit of our shareholders."

COO, Tim Fernback

Project Facts


Salar de Atacama, Chile, South America


160ha (365 acres)


Near production opportunity situated in the highest-grade lithium salar in the world.

  • One of few “exploitation concessions” granted within the Salar de Atacama, where nearly 37% of the worlds Lithium is produced
  • Approx. 22km from SQM and Albermarle’s large-scale production facilities that collectively produce over 62,000 tonnes of Lithium Carbonate Equivalent annually, and account for 100% of Chile’s current lithium output
  • Close to power, labour, communications, transportation and other infrastructure


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