Kali Metals has signed a binding memorandum of understanding (MoU) with Japan’s JX Advanced Metals concerning the Southern Lachlan Project, which spans Victoria and New South Wales, Australia.
Under the agreement, JX Advanced Metals will fund up to $498,746 (A$700,000) of exploration activities at the project during an initial phase ending 31 March 2027.
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The project covers approximately 1,413km² east of Albury-Wodonga and includes Palaeozoic granitoid and sedimentary units within the Southern Lachlan Fold Belt.
The site is considered to have potential for lithium-caesium-tantalum pegmatites, as well as tin and tungsten mineralisation.
During the initial exploration and due diligence period, Kali Metals will remain the operator and manage the exploration programme.
A joint Exploration Committee will be formed to oversee the progress of these activities.
Kali Metals is entitled to charge a management fee for its role in running the exploration works.
At the conclusion of the exploration phase, JX Advanced Metals will have an option to negotiate terms for either a farm-in or joint venture agreement, with a negotiation deadline set for 30 June 2027.
The current arrangement enables JX Advanced Metals to conduct due diligence and assess the project’s prospects before deciding on a long-term collaborative structure.
The MoU outlines a phased approach for the companies to work together at the Southern Lachlan Project, with future steps contingent on the results of the initial exploration period and further negotiation between the parties.
Kali Metals managing director Paul Adams said: “We are very pleased to have executed this binding MoU with JX Advanced Metals over our Southern Lachlan Fold Belt tenements.
“The JX Advanced Metals’ funding will allow Kali to advance exploration across our large and prospective project area, which hosts numerous opportunities for the discovery of non-ferrous metals used in high technology industries.
“The support from JX Advanced Metals as a potential long-term partner is an exciting opportunity for Kali and its shareholders.”
In February 2026, Kali Metals signed a binding agreement to acquire a 30% stake in both the DOM’s Hill and Pear Creek Projects in Western Australia’s Pilbara region from SQM Australia.
