Lithium Chile (TSXV: LITH; US-OTC: LTMCF) is looking to leverage the expertise of French mining group Eramet to help unlock the potential of four of its Chilean exploration properties.
As part of a farm-in agreement signed Tuesday, Eramet is expected to carry out a three-phased exploration program on the Llamara, Aguilar, Rio Salado and Aquas Caliente properties spanning more than 400 sq. km. over the next three to four years. The total projected exploration program amounts to US$20 million.
Upon completion of each phase, Eramet would earn share capital in the joint venture holding the mining tenements, totalling up to 70% at the end of phase three with an option to reach 100%.
In return, Lithium Chile will be entitled to a “success bonus” pre-agreed by the parties based on the amount of lithium resources delineated in accordance with a completed NI 43-101 report or similar standards.
“Eramet’s unparalleled expertise and credibility further enhances our position in the mineral industry,” Lithium Chile’s CEO Steve Cochrane said in a news release. “This partnership underscores our shared commitment to advancing sustainable mineral projects in Chile.”
The Calgary-based lithium developer also noted that this agreement is proceeding in parallel with the strategic process being undertaken by PI Financial Corp. This synchronized approach underscores the Company’s commitment to maximizing value in all aspects of its operations, it said.
The company currently holds nearly 1,120 sq. km. of prospective land in Chile’s lithium-rich regions. It also holds about 300 sq. km. in Argentina, with its main focus being the multi-staged Salar de Arizaro project.
Shares of Lithium Chile fell by 4.4% to end the day at 66¢, for a market capitalization of $136 million. The stock traded between 47¢ and $1.13 over the past 52 weeks.
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