Liontown Limited has entered into a binding farm-in agreement with NEXT Lithium Corp. to acquire up to a 100% interest in the Centenario lithium brine exploration project in Salta Province, Argentina.

Under the agreement, Liontown will stage its entry through US$40 million of project expenditure over four years alongside associated milestone payments. Initial consideration upon the transaction becoming unconditional comprises US$5 million in cash and US$10 million in Liontown shares.

The project expands Liontown’s footprint beyond its established Kathleen Valley hard-rock lithium operation in Western Australia, giving the company exposure to lithium brine, one of the two primary sources of global supply.

“This transaction gives Liontown a low-cost entry into lithium brine. Brine is one of the two primary sources of the world's lithium, and this is our first step in building real understanding and capability in it.” — Tony Ottaviano, Managing Director and CEO

To earn an initial 49% interest in the project, Liontown plans an initial US$15 million work programme and drilling campaign targeting anomalies identified by a completed transient electromagnetic survey over the first 24 months following completion.

Subsequent phases allow Liontown to increase its stake to 51%, 75%, and ultimately 100% through further funding and resource-linked milestone payments capped at US$125 million, payable in cash, Liontown shares, or a combination at NEXT Lithium's election.

“Structuring the deal as a staged farm-in ties our capital to results, so we invest more only as the project proves itself. Kathleen Valley remains our priority, and we will keep pursuing value-accretive growth where it fits our strategy.” — Tony Ottaviano, Managing Director and CEO

Initial completion remains subject to customary conditions precedent, including the release of existing security interests and repayment of outstanding intercompany loans, which must be satisfied within six months of signing. The transaction is currently expected to reach initial completion shortly following the execution of the farm-in agreement.

Read the full announcement: Liontown to earn up to 100% of the Centenario brine project