WATCH: In this Exploration Update, MD Mike Schwarz discusses the reasons why iTech has entered into the partnership with SQM. (5min)
iTech Minerals (ASX: ITM) is pleased to announce that one of the world’s largest lithium chemicals producers, Sociedad Química y Minera de Chile, through its subsidiary SQM Australia, part of the SQM international lithium division, has entered a binding Memorandum of Understanding to partner with the Company in developing the Reynolds Range Lithium Project in the Northern Territory.
The Reynolds Range Lithium Project is a new lithium pegmatite discovery in the Northern Territory. With high grade rock chips of up to 8% Li2O at the GMF Pegmatite and known pegmatites outcropping over the entire 60km tenement package, iTech believes it will take the technical capability and financial resources of one of the world’s largest lithium chemical producers, like SQM, to fully capture the value of this exciting new project.
With SQM initially funding and managing all aspects of lithium exploration and development, iTech can focus its resources on exploration of the copper and gold potential of the Reynolds Range tenement package of which it retains 100% ownership. iTech looks forward to a valuable and productive working relationship with SQM as we explore this exciting new region side by side.
HIGHLIGHTS
• The Agreement brings both the technical and financial resources of one of the world’s largest lithium chemicals producers to a new lithium pegmatite discovery in the Northern Territory.
• Subject to a short due diligence period, SQM can earn into the lithium mineral rights on the Reynolds Range Lithium Project (iTech retains 100% of the rights to all other minerals including copper and gold).
- SQM can earn an immediate 30% interest in the lithium rights by paying an initial fee of A$2 million upon completion of due diligence.
- SQM has the option to earn up to 51% in the lithium rights by spending A$7 million on exploration, within 4.5 years of the commencement date, with a minimum spend of A$2 million within the first 1.5 years.
- SQM has the option to earn up to 70% in the lithium rights by paying an additional A$3 million to iTech and defining a JORC (2012) compliant Mineral Resource Estimate exceeding 50Mt @ 1.0% Li2O or equivalent or spending an additional A$15 million on exploration.
- Payment of a one-off success fee will be payable by SQM upon completion of a definitive feasibility study and a decision to mine. The fee will be calculated based on the lithium oxide content in the resource.
• SQM will operate the project during the earn-in period.
• iTech and SQM will create a technical committee to oversee the development of the Reynolds Range Lithium Project. The committee will have equal representation of members from SQM and iTech.
IMAGE: Using ultra-violet light to identify Spodumene crystals in Pegmatite in the field.
RECENT NEWS FROM THE REYNOLDS RANGE PROJECT
AGM Presentation (2024)
iTech Partners With SQM To Develop Reynolds Range Lithium Project
Gold-Silver-Antimony Prospectivity Expanded At Reynolds Range
