Greenwing Resources (ASX:GW1) is targeting binding documents within three months for a staged partnership with Atana Elements at its San Jorge Lithium Brine Project in Argentina.
The non-binding term sheet follows a competitive strategic investor process and covers the project in Catamarca Province.
It includes a US$800,000 ($1,146,058) equity investment, an earn-in of up to 37.5% through an estimated US$15.3 million of expenditure, and an option over the remaining 62.5% for US$125 million.
Atana, a US-based critical minerals explorer, pays US$300,000 within five business days for three months of exclusivity. Half is non-refundable, with the balance held in third-party escrow until binding documents are signed.
Further, Atana earns its interest in stages: 5% for US$300,000 of technical work over nine months, rising to 15% with about US$4 million of drilling and resource expansion, then 37.5% with about US$11 million of geophysics, drilling, technical studies, and a Preliminary Feasibility Study (PFS).
It also earns a matching share of offtake at market-based pricing.
If phase 1B is not completed on time, Greenwing can repurchase the earned interest for 50% of Atana’s sunk costs. After the PFS, Atana holds an option — but no obligation — to buy the remaining 62.5%.
Greenwing can buy back up to 10% in agreed circumstances at the option’s implied valuation, about US$20 million.
San Jorge hosts a maiden mineral resource estimate of 1.07 million tonnes (Mt) of lithium carbonate equivalent at 195mg/L lithium, comprising 0.67Mt indicated and 0.40 million tonnes inferred. The brine remains open to the north, west, and at depth.
The staged structure limits Greenwing’s own funding commitment, with Atana carrying the exploration spend.
Managing Director Peter Wright says the process was run to find a partner able to fund the work.
“Our objective throughout this process has been to secure the technical expertise and an externally funded development programme necessary to advance the San Jorge Lithium Project,” Wright notes.
The deal remains subject to Atana’s due diligence, board, shareholder, ASX, regulatory, and third-party approvals.
Greenwing Resources is an Australian critical minerals explorer and developer advancing lithium brine in Argentina alongside graphite and hard-rock lithium in Madagascar.
Write to JC Villarba at Mining.com.au
Images: Greenwing Resources
