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Liontown signs farm-in to potentially take full ownership of Centenario lithium
The staged agreement starts with $5 million in cash and $10 million in shares, and includes a planned $15 million drilling program in the first two years.
Liontown Limited (ASX: LTR) has signed a farm-in agreement with NEXT Lithium Corp. that could allow it to take full ownership of the Centenario lithium brine exploration project in Argentina. Mining.com reports the deal is intended to give Liontown a lower-cost entry into lithium brines while expanding its geographic and resource exposure beyond its Kathleen Valley hardrock operation in Western Australia.
Under the agreement, the farm-in is divided into four phases that gradually increase Liontown’s interest in Vertex Holdings, NEXT Lithium’s Australian subsidiary, to 100% over a four-year period. Liontown will initially pay $5 million in cash and issue $10 million in shares for the farm-in right upon completion, and it plans an initial $15 million work program within the first two years, including a drilling campaign targeting anomalies identified by transient electromagnetic survey.
With this early funding, Liontown may earn an effective 49% interest in the project. The company is not required to proceed through phases 1, 2 or 3, but if it chooses to reach phase 3 it must complete the phase 4 acquisition of 100% of Vertex.
Liontown says Centenario is near the Pozuelos-Pastos Grandes and Centenario-Ratones projects, both of which have production targets for lithium carbonate of up to 150,000 tonnes a year. Mining.com also notes that after the second phase of the project is completed, annual copper production is expected to be 550,000 tons.
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