LSC Lithium Corporation has entered into a joint venture agreement with Litica Resources, a wholly owned subsidiary of Pluspetrol S.A., a leading private oil and gas company to enter into a 40/60 joint venture to explore and develop tenements on the Salar de Arizaro lithium project in Salta Province.
- Litica Resources is a Pluspetrol company, a leading private oil and gas company that has selected LSC as its partner for its initial expansion into lithium.
- Joint Venture will cover 22,376 hectares in the centre of the Salar de Arizaro, Salta province.
- Litica Resources will act as operator of the Joint Venture and intends to commence exploration activities and brine sampling as soon as possible.
- Completion of an initial resource statement on the Arizaro Project is anticipated at the end of the three-stage exploration work program.
Ian Stalker, President & Chief Executive Officer of LSC, commented, «This joint venture with Litica Resources is a major accomplishment for LSC. We are delighted to have reached an agreement and feel certain that the complimentary skill sets and strong relationship of cooperation between the parties will lead to many benefits, now and in the future, for the respective shareholders and stakeholders. We believe this is the beginning of a lasting partnership with Litica Resources and that it represents an important step towards lithium production for LSC while securing financial contribution.”
The parties have agreed to a three-stage exploration work program for the Arizaro Project whereby Litica Resources, as operator, will commence sub-surface brine sampling and geological mapping, complete geophysical surveys and diamond drill holes and evaluate the brine chemistry with the intention of completing a maiden resource statement.
Litica Resources has agreed to commit a total of US$6,868,000 to LSC and the Joint Venture over a three-stage exploration work program to maintain its 60% ownership including an initial lump-sum payment of US$625,000 to LSC on closing of the Transaction.