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Lithium Chile (TSXV: LITH) is looking to leverage the expertise of Eramet to unlock four of the company’s Chilean exploration properties, Llamara, Aguilar, Rio Salado and Aquas Caliente, which collectively over an area of more than 400 square kilometres.
As part of a farm-in agreement signed Tuesday, Eramet is expected to carry out a three-phased exploration program on these properties over the next 3-4 years. The total projected exploration program amounts to $20 million.
Upon completion of each phase, the French mining group would earn share capital in the joint venture holding the mining tenements, totalling up to 70% at the end of Phase 3 with an option to reach 100% equity.
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 or similar standards.
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.
“Eramet’s unparalleled expertise and credibility further enhances our position in the mineral industry,” Lithium Chile CEO Steve Cochrane said in a news release. “This partnership underscores our shared commitment to advancing sustainable mineral projects in Chile.”
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 2.9% to C$0.67 by 3:20 p.m. ET Tuesday, for a market capitalization of C$138.2 million ($101.6m). The stock traded between C$0.47 and C$1.13 over the past 52 weeks.
