Australian miner iTech Minerals has announced a partnership with SQM Australia, a subsidiary of the Chilean lithium giant Sociedad Química y Minera de Chile, to develop the Reynolds Range Lithium Project in the Northern Territory, Australia.
The Reynolds Range Lithium Project, entirely owned by iTech Energy, a subsidiary of iTech Minerals, spans 375km² and includes three granted exploration licences.
The project, rich in spodumene bearing pegmatite, is situated within the Aileron province of the North Australian Craton, accessible from Alice Springs.
The project has shown potential with more than 60km of outcropping pegmatites and high-grade lithium findings.
The binding memorandum of understanding outlines SQM’s potential to earn up to a 70% interest in the project’s lithium rights, starting with a 30% stake for A$2m ($1.3m) after a due diligence period.
iTech retains 100% rights to all other minerals, including copper and gold, within the tenements.
Further investment of A$7m in exploration over four and a half years could increase SQM’s interest to 51%, with an option to reach 70% by defining a significant mineral resource estimate or by additional exploration spending.
iTech Minerals managing director Mike Schwarz said: “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.”
SQM’s due diligence and the subsequent earn-in stages are subject to specific conditions, including internal approvals and regulatory consents under Australian law.
Upon satisfactory completion of due diligence, a joint venture will be formed, with a technical committee comprising representatives from both SQM and iTech overseeing the project’s development.
