NOA Lithium Brines (TSX-V:NOAL) has signed a term sheet with Summit Explore for a joint venture arrangement covering the Arizaro lithium brine project in Salta province, Argentina.
Under the agreement, Summit Explore can earn a 60% interest in the project by completing technical studies and making up to US$3.5 million ($5 million) in cash and equity investments, while NOA retains 40%.
The earn-in is structured around three key milestones. Summit Explore must first finance an exploration program and complete a National Instrument 43-101 compliant Preliminary Economic Assessment (PEA) by 31 August 2027.
Upon delivery of the PEA, Summit Explore will make a US$750,000 equity investment in NOA through a private placement. The share price will be set at twice the 20-day volume-weighted average trading price preceding the PEA delivery date.
The final milestone requires Summit Explore to complete a NI 43-101 compliant Preliminary Feasibility Study (PFS) and make a US$2.75 million cash payment to NOA within 24 months of signing a definitive agreement.
CEO Gabriel Rubacha says the agreement ‘provides a pathway’ to accelerate Arizaro’s technical advancement while NOA progresses its Rio Grande project toward a PFS.
Summit Explore CEO Amanda Hall says the Arizaro property fits the company’s strategy of consolidating quality brine supply behind a centralised direct lithium extraction (DLE) facility.
Representative brine from Arizaro will be tested at Summit’s demonstration facility in Santiago, Chile, to assess compatibility with the company’s denaLi DLE technology.
NOA has consolidated over 140,000 hectares across three prospective salars in Argentina’s Lithium Triangle, including Rio Grande, Arizaro, and Salinas Grandes.
Write to JC Villarba at Mining.com.au
Images: NOA Lithium Brines
