Liontown to earn up to 100% interest in Centenario lithium project
The farm-in agreement with NEXT Lithium gives Liontown an opening to build its brine capability early on.
Liontown Limited, an Australian miner listed on the ASX, has entered into a farm-in agreement with Next Lithium Corp. for the Centenario lithium brine exploration project in Argentina. This deal could potentially give Liontown full ownership of the project after a staged investment over four years. Liontown will acquire a 49% stake in the project initially, with the possibility of increasing their stake to 100% depending on the success of the project.
The project's strategic location near other lithium production sites and its proximity to Argentina's top lithium exporting status makes it an attractive addition to Liontown's portfolio. The agreement is divided into four stages, with Liontown's investment increasing progressively, reaching a full purchase of Liontown's Australian subsidiary NEXT Lithium's shares after four years.
Liontown plans to spend $15 million on an initial work program, which includes a drilling campaign to explore identified anomalies. The CEO of Liontown, Tony Ottaviano, sees this as an opportunity to diversify the company's operations and acquire valuable expertise in lithium brines and brine exploration from Next Lithium's CEO, Kyle Stevenson.
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