Australia-listed Arizona Lithium on Monday announced that it had entered into a mining services agreement with Navajo Transitional Energy Company (NTEC) for the Big Sandy project.

NTEC, which is a wholly owned subsidiary of the Navajo Nation, will be responsible for managing the permitting requirements, additional exploration drilling, mining design, environmental assessments and development for Big Sandy.

The agreement formalises terms initially agreed under a strategic alliance term sheet in December 2022.

“NTEC is the ideal operating partner for Big Sandy,” said Arizona Lithium MD Paul Lloyd, noting that NTEC had significant experience in mining and energy projects.

NTEC owns the Navajo mine, as well as other operations in Montana and Wyoming.

Retired professional Vern Lund, the CEO of NTEC, will join the Arizona Lithium board.

“Big Sandy represents a substantial development opportunity holding 320 000 t of lithium carbonate equivalent, with only 4% of the project drilled, providing significant exploration upside once permitted,” said Lloyd.