Lithium producer Orocobre (TSX: ORI; ASX: ORE) plans to partner with junior Advantage Lithium (TSXV: AAL) on its Cauchari lithium project in northwestern Argentina’s Jujuy province.
Cauchari is about 15 km south of Orocobre’s flagship Olaroz lithium facility, and sits adjacent to a project of the same name owned by Lithium Americas Corp. (TSX: LAC) and Sociedad Quimica y Mineral (NYSE: SQM).
Under the letter of intent, Advantage Lithium will receive a 50% stake in Cauchari in exchange for giving Orocobre a 31.12% stake in the company, a 1% royalty, the right of first refusal for future brine production, and the right to nominate two members to Advantage Lithium’s board.
Advantage Lithium can earn a further 25% stake in Cauchari by spending US$5 million over three years or completing a feasibility study in that period. The partners will set up a joint venture for Cauchari, which has an inferred resource of about 470,000 tonnes of lithium carbonate equivalent and 1.6 million tonnes of potash (potassium chloride).
Read the entire story at The Northern Miner.