ASX-listed Latin Resources has signed a joint venture (JV) agreement on the company’s Catamarca lithium pegmatite projects with Argentinian investment group Integra Capital.
The signing of the binding JV agreement comes after an extensive negotiation process on Latin’s concessions, which encompasses more than 70 000 ha in Catamarca province, in Argentina.
Integra is one of Argentina’s largest lithium explorers and holds over 400 000 ha of lithium brines projects in the Jujuy and Catamarca provinces.
Integra will spend up to $1-million, or A$1.4-million, to earn 50% of the Catamarca lithium pegmatite projects, and fund an aggressive exploration programme, with the initial aim of delivering a maiden resource.
Following the release of a maiden resource, the JV’s focus will turn to project development, including feasibility, engineering and metallurgy studies to produce a lithium spodumene concentrate.
Latin has already developed a high-level scoping study on the concessions with consulting engineers Primero Group.
Latin will be free-carried through Integra’s initial exploration activity, with financing for the construction of the processing plant to be in line with percentage ownership between the companies at the time of the final investment decision.
Integra has an option on completion of its due diligence to take a 10% stake in Latin and become the company’s largest corporate shareholder.
“Integra’s financial capacity combined with our track record and experience in Latin America makes a formidable team with the ability to rapidly explore and develop a lithium project.
“Our projects have received widespread interest, but one major advantage Integra offers Latin is their proven in-country experience in Argentina with developing and operating on time and under budget,” says Latin MD Chris Gale.