Liontown has signed a binding farm-in agreement with NEXT Lithium to acquire up to a 100% stake in the Centenario lithium brine project in Salta Province, Argentina.
Under the terms of the transaction, Liontown may spend up to A$56.16m over four years on project expenditure.
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In addition, milestone payments totalling up to $155m may be made over the same period, payable in cash, Liontown shares or a combination of both at the discretion of NEXT Lithium.
The initial consideration, due when the farm-in agreement becomes unconditional, comprises $5m in cash and $10m in Liontown shares.
NEXT Lithium CEO Kyle Stevenson said: “The Centenario Project is one of the last large-scale lithium brine exploration projects in Argentina.
“Partnering with Liontown provides the experience, technical capability and financial strength needed to advance Centenario and realise its full potential.”
The Centenario project covers 14,577 hectares (ha) and lies adjacent to two significant lithium extraction operations in Argentina.
To the west is the Pozuelos-Pastos Grandes project, a joint venture between Lithium Argentina and Ganfeng Lithium, which has outlined plans to produce up to 150,000 tonnes per annum of lithium carbonate.
To the south, Eramet’s Centenario-Ratones operation, also in production, is targeting similar output levels.
Liontown, which already operates hard-rock lithium facilities at Kathleen Valley in Western Australia, described the Centenario transaction as providing a low-cost entry into a major lithium brine region in Argentina.
Liontown managing director and CEO Tony Ottaviano said: “This transaction gives Liontown a low-cost entry into lithium brine. Brine is one of the two primary sources of the world’s lithium, and this is our first step in building real understanding and capability in it.”
The agreement offers NEXT Lithium a route to bring the Centenario site forward with a partner able to provide financial and technical resources.
NEXT Lithium is a private entity focused on the exploration for and development of lithium resources in Salta Province.
