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Chilean lithium giant SQM (NYSE: SQM) has agreed to buy a 30% interest in Australia’s Pirra Lithium, a junior born in March from the combination of certain exploration assets in the Pilbara region held by Calidus Resources (ASX: CAI) and Haoma Mining.
SQM will ultimately increase its stake in Pirra Lithium to 40% by injecting A$3 million ($1.9m) to fund exploration, Calidus —which owned Pirra equally with Haoma —said in the statement.
SQM Australia will subscribe A$3 million Pirra shares for A$0.20 each. Calidus will retain is 40% ownership in the junior by investing A$2 million in exploration.
The West Perth-based company said its decision to hold on to Pirra was based on “the significant potential of the land package” the company has, adding that it would re-assess its options as exploration continues.
“With an increased landholding of over 1,411 km2 in the Pilbara, Pirra is now funded to rapidly progress exploration across these tenements,” Calidus managing director Dave Reeves said.
Pirra’s main exploration assets are the Spear Hill and Northampton lithium tenements and it is currently mapping and sampling priority lithium targets including Tabba Tabba South in the West Pilbara.
SQM, the world’s second-biggest lithium producer, has been recently increasing its footprint in Australia. The country is the top producer of the battery metal and has more than 80 lithium-related companies listed on its main stock exchange.
The company holds a 50/50 interest with Wesfarmers in the Mt. Holland lithium project, which is expected to come online by the second half of 2024 and produce up to 50,000 tonnes a year of lithium hydroxide.
In January, it announced an A$4.2 million ($2.8m) investment in Australia’s Azure Minerals (ASX: AZS), which made it the lithium junior’s largest shareholder. The company also attempted, but failed to buy out Azure in August.
SQM also inked in July an earn-in deal with Tambourah Metals (ASX: TMB) covering the Australian explorer’s Julimar North Project in Western Australia.
It has also entered smaller farm-ins across Australia with companies including Kalamazoo Resources and Dart Mining.
