iTech Minerals Ltd (ASX: ITM) has announced a transformative partnership with global lithium giant Sociedad Química y Minera de Chile (SQM) to develop its Reynolds Range Lithium Project in the Northern Territory. This agreement brings substantial technical expertise and financial muscle to one of Australia’s most promising lithium prospects.
The binding Memorandum of Understanding (MoU) outlines a phased earn-in agreement, allowing SQM to progressively acquire up to 70% of the lithium rights in the Reynolds Range project:
Additionally, SQM will pay a success fee upon completing a feasibility study and making a decision to mine, further aligning incentives between the two companies.
The partnership reflects the immense potential of the Reynolds Range project, which spans 375 square kilometres and boasts outcropping pegmatites over 60 kilometres, with rock chip samples recording lithium grades as high as 8% Li₂O. The project is at the forefront of a global lithium exploration boom, driven by soaring demand for battery materials.
iTech will retain 100% ownership of the copper and gold rights on the tenement, allowing it to focus its resources on these high-value opportunities while leveraging SQM’s expertise for lithium exploration.
Michael Schwarz, iTech’s Managing Director, underscored the significance of this collaboration:
“With SQM initially funding and managing all aspects of lithium exploration and development, iTech can focus its resources on exploring the copper and gold potential of the Reynolds Range tenement package. We look forward to a valuable and productive working relationship with SQM as we explore this exciting new region side by side”.
As one of the largest lithium chemicals producers globally, SQM brings unparalleled experience in exploring and developing lithium resources. The partnership positions the Reynolds Range project to benefit from advanced exploration techniques, rapid project development timelines, and access to global markets.
During the earn-in period, SQM will operate the project, supported by a technical committee with equal representation from iTech and SQM. This collaborative approach ensures alignment of strategic goals and maximises the project’s potential.
The Reynolds Range partnership comes at a pivotal moment for the lithium industry. With growing demand for lithium-ion batteries powering the transition to renewable energy, the project is well-positioned to supply a critical resource. iTech’s collaboration with SQM ensures it has the necessary resources and expertise to unlock the full value of the project, creating opportunities for rapid shareholder returns.
As the due diligence phase begins, the partnership sets the stage for a potentially game-changing development in Australia’s critical minerals sector. For iTech, this agreement not only validates the Reynolds Range project’s potential but also establishes a foundation for long-term value creation.