Wedoany.com Report-Nov 22,  One of the world’s largest lithium chemicals producers, Sociedad Química y Minera de Chile, is jumping aboard a potential new lithium mine in the Northern Territory.

Through its subsidiary, SQM Australia, the lithium giant will potentially partner with iTech Minerals to develop the Reynolds Range project 90–230km north west of Alice Springs.

The project currently consists of three granted exploration licences, which SQM will have the option to earn into the lithium mineral rights of under the agreement between the companies.

“With high grade rock chips of up to eight per cent lithium oxide 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,” iTech managing director Mike Schwarz said.

“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 per cent ownership.”

SQM will have four months from now in which to carry out due diligence, after which the company will be able to earn an immediate 30 per cent interest with a $2 million buy-in.

SQM has the option to earn up to 51 per cent in the lithium rights by spending $7 million on exploration, within 4.5 years of the commencement date, with a minimum spend of $2 million within the first 1.5 years.

Up to 70 per cent of the lithium rights will be on offer to SQM should it then decide to front another $18 million.

The payment of a one-off success fee will be paid to SQM by iTech following the completion of a definitive feasibility study on the project, which will be calculated based on the site’s lithium content.