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Highlights:
iTech Minerals has signed a binding Memorandum of Understanding (MoU) with SQM Australia to develop the Reynolds Range lithium project in Northern Territory.
Under the MoU, SQM can earn up to a 70% interest in the lithium rights by meeting exploration milestones and financial commitments.
iTech will retain full ownership of the rights to copper and gold resources within the Reynolds Range tenement package.
iTech Minerals (ASX:ITM) has entered into a binding Memorandum of Understanding (MoU) with SQM Australia, a subsidiary of one of the world’s leading lithium chemicals producers, Sociedad Química y Minera de Chile (SQM). This collaboration focuses on advancing the Reynolds Range lithium project, located in the Northern Territory of Australia.
The project is characterized by over 60 kilometers of outcropping pegmatites, with the GMF Pegmatite already showing rock chips with more than 8% Li2O. With approximately 55 kilometers of strike remaining to be explored, the scale of the task makes it challenging for a junior company like iTech Minerals to undertake the exploration independently. To address this, SQM brings significant technical and financial resources to the table, aiming to fully unlock the potential of the asset.
Under the MoU, SQM will begin by conducting due diligence and paying an initial fee. Following this, SQM can secure a 30% interest in the lithium mineral rights. As part of the agreement, SQM has the opportunity to increase its stake to 51% by spending on exploration activities, and ultimately, it can earn up to 70% by defining a resource estimate exceeding 50 million tonnes at 1.0% Li2O or its equivalent.
While SQM will manage the lithium exploration and development, iTech Minerals retains full ownership of all copper and gold rights in the Reynolds Range project. This strategic partnership allows iTech to concentrate its efforts on exploring the copper and gold potential of the region. Both companies will work collaboratively through a technical committee to oversee the project's progression, which is poised to benefit from SQM’s substantial industry experience and resources.
