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Highlights
- Strategic Alliance: iTech Minerals and SQM enter a three-stage agreement to develop the Reynolds Range Lithium Project in Australia's Northern Territory.
- Investment Framework: SQM to invest up to $27 million in exploration and resource definition to earn up to 70% of lithium rights.
- Project Oversight: A joint technical committee with equal representation from both companies will manage development.
iTech Minerals (ASX:ITM) has partnered with global lithium producer Sociedad Química y Minera de Chile (SQM) to advance the Reynolds Range Lithium Project, located in the Aileron Province of the Northern Territory, Australia. The agreement marks a significant step for iTech in leveraging SQM’s extensive technical expertise and financial resources to unlock the project's potential.
The Partnership Agreement
Under the binding memorandum of understanding, SQM, through its subsidiary SQM Australia, will operate the project and has the option to earn 100% of the lithium rights through a staged investment:
- Stage 1: SQM will pay an initial $2 million fee to earn a 30% interest in lithium rights, subject to due diligence, forming an unincorporated joint venture.
- Stage 2: To increase its stake to 51%, SQM will spend an additional $7 million on exploration within four and a half years, including a minimum spend of $2 million in the first 18 months.
- Stage 3: SQM can raise its interest to 70% by either defining a mineral resource of over 50 million tonnes at 1% lithium oxide equivalent or spending an additional $15 million on exploration. An additional payment of $3 million to iTech is also required.
Project Potential
The Reynolds Range Lithium Project spans 375 km² in the Paleoproterozoic North Australian Craton. iTech’s Managing Director, Mike Schwarz, highlighted the significance of this project as a “new lithium pegmatite discovery in the Northern Territory.” The partnership aims to identify and develop high-grade lithium resources in the region, which is considered prospective for pegmatite-hosted lithium deposits.
SQM’s Role and Expertise
SQM, a leading global lithium producer, brings decades of experience in developing lithium resources and delivering essential products for the energy and industrial sectors. With its financial and technical strength, SQM will take charge of the project during the earn-in period, ensuring efficient exploration and development.
Governance and Collaboration
The partnership will also establish a joint technical committee, comprising equal representatives from iTech and SQM, to oversee the project's development and ensure alignment of goals.
