Dempsey, which is chaired by resource sector entrepreneur Nathan McMahon, is interested in the ground in the Hombre Muerto Basin held by Blue Sky Lithium.
The private company is run by Chilean-Australian mineral industry professionals Juan Pablo Vargas de la Vega and Raymond Liu, with the former to be appointed Dempsey’s MD if the deal ultimately goes ahead.
Dempsey will issue scrip in staged payments dependent on milestones to complete the acquisition.
The milestones include a resource within 18 months, a definitive feasibility study within 36 months, production from a pilot plant.
Dempsey also plans to raise A$616,000 by issuing new shares at 8c, with a further minimum raising of $1.37 million needed to complete the deal.
Assuming the deal completes an...