Rodinia Minerals Inc (TSX-V: RM) is looking at buying a lithium project in Argentina, in addition to the lithium mine it is currently developing in Nevada’s Clayton Valley.

The group announced today it signed a letter of intent with a private party in Argentina to enter into an option agreement to acquire a 100 percent interest in approximately 4,500 hectares of the Salinas Grandes salt flat (salar) in the province of Jujuy, Argentina.

The potential acquisition remains subject to a 30 day due diligence period, the execution of a definitive agreement and involves payments totaling US$900,000 over 2 years, with an initial payment of US$150,000 due upon signing of the definitive agreement.

Historic, non-NI43-101 studies on the brine chemistry in the acquired salar concluded lithium concentrations in excess of 400 parts per million with a reported magnesium-to-lithium ratio of 3.75.

The opportunity was identified by Forbes & Manhattan Inc, which is controlled by Rodinia chairman Stan Bharti. Neither Forbes & Manhattan nor Bharti have received any compensation in connection with this deal.

"With these grades and ratios, the company believes this salar has the potential to be a producer. The grades are significantly higher than many of the surrounding salars, including our understanding of a pilot plant in operation at a much higher magnesium-to-lithium ratio," said David Stein, president and CEO.

William Randall, vice president Exploration added: "To our knowledge, the salar has never been explored for lithium at depth. The company believes in the future production potential of the salar based on our understanding that the brines commence at depths between 0.2 metres and 3.0 metres from surface.”

Rodinia is looking to become a low cost producer of lithium carbonate from brine and to ride the wave of the strong long term demand prospects for lithium. Apart from establishing the above mentioned mine in Nevada it will also be looking to develop the recently acquired Strider lithium project in Manitoba and to make other lithium acquisitions.

Besides its lithium interests, Rodinia is exploring for uranium at several projects in Arizona and Utah.

Rodinia Minerals

Rodinia Minerals is a rapidly-growing clean energy company well-positioned to capitalize on the world’s surging demand for uranium and lithium. Although our perspective is worldwide, we’re presently focused on exploration and development of key holdings in historic uranium and lithium belts of the Western United States.