The project comprises 12,000 hectares, mostly adjacent to and surrounded by concessions held by mid-tier producer Orocobre and Toronto-listed Lithium Americas Corporation.

Solaroz adjoins Orocobre's operating Olaroz project and Strike believe the aquifer which supplies the brine being extracted by Orocobre is likely to extend under its new ground.

Strike will pay US$6.59 million in cash and shares over four years for the interest.

The company will complete an environmental impact assessment ahead of a drilling program.

Strike has formed a commercial partnership with Hanaq Argentina for local operating support and services.

Strike managing director William Johnson said the acquisition capitalised on the company's strong operating experience in South America over the past 14 years.

"Solaroz offers tremendous upside potential for Strike, given its highly prospective and strategic location next to Orocobre's producing lithium brine project," he said.

"This is also the second acquisition by Strike in the battery minerals sector, following the acquisition of the high-grade Burke graphite project in Queensland."

Shares in Strike surged 64.2% to A6.9c, a 52-week high. The thinly traded stock started the year at 4.5c.