Vancouver, B.C., March 2, 2022. PORTOFINO RESOURCES INC. (TSX-V: POR) (OTCQB: PFFOF) (FSE: POTA) (“Portofino” or the “Company”) is pleased to announce the execution of a Memorandum of Understanding (“MOU”) with Recursos Energeticos Y Mineros De Salta S.A. (“REMSA”), the state-owned mining company of the Province of Salta, Argentina.

The MOU provides Portofino with an option to earn a majority interest in multiple mining concessions that REMSA maintains. The initial mining properties with geological potential have been identified by Portofino and REMSA and are focused on lithium brine targets and total more than 27,000 hectares (“ha”). The property concessions are located in the heart of the world-renown Argentine Lithium Triangle and in close proximity to multiple world-class lithium projects. The concession size and locations are indicated below and in Figure 1:

Hombre Muerto Norte (3,028ha)
- Concessions are located in close proximity to Galaxy/Posco (Sal de Vida) project which is at Feasibility study stage. The Hombre Muerto salar also hosts multiple developing lithium projects and includes Livent Corp’s producing Fenix project.
Pastos Grandes (3,489ha)
- Concessions are located in close proximity to the Millennial Lithium project which was recently sold to Lithium Americas for $400 million.
Arizaro (19,111ha)
- Concessions located south of the advanced Rincon project which was recently sold to Rio Tinto for $825 million.
Incahuasi (722ha)
- Concessions located on the Chile border and just west of the Rio Tinto Rincon project.
Rio Grande and Salinas Grandes (1060ha).
- Concessions located east of Orocobre’s producing Olaroz project.
Subject to results of initial surface exploration activities on each project, Portofino may exercise its “Option” to form a joint venture company (“JV”) to advance to the next stages of exploration and development. The Option shall remain in effect for up to two years from initial (non-invasive) exploration work in each mining concession.

Notwithstanding this initial list, Portofino will have a preferential right to option (under the same terms) any new areas obtained by REMSA. The prospection and initial exploration campaigns will be financed by Portofino.

Portofino has executed a separate agreement with Ronialem S.R.L. (“Ronialem") pursuant to the introduction to REMSA. In addition, Ronialem has provided local advice in structuring the REMSA agreement and will support ongoing efforts in Salta. In exchange, Ronialem would hold a 15% interest in any JV formed with REMSA.

Upon giving notice of intent to exercise its Option, certain of the projects may be subject to public tender. The Option, however, provides Portofino with a right of first refusal to match any competing offer. Portofino and Ronialem (“the Partners”) have agreed to reserve up to 15% of the JV for REMSA in any successful bid. Portofino would thus hold a minimum 70% interest in any resulting JV.

If the Partners are unsuccessful in a public tender process, the MOU includes a provision whereby the Partners are entitled to receive payment of the greater of 4 times exploration and evaluation expenditures on the concessions or 50% of gross proceeds from the winning bidder.
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https://portofinoresources.com/news/2022/portofino-executes-agreement-regarding-multiple-lithium-projects-covering-more-than-27-000ha-in-salta-argentina/