Liontown Limited has executed a binding farm-in agreement with NEXT Lithium Corp. to acquire up to a 100% interest in the 14,577-hectare Centenario lithium brine exploration project in Salta Province, Argentina.

Under the agreement, Liontown plans an initial US$15 million work programme and drilling campaign at the Centenario Project to earn an initial 49% interest, backed by total project expenditure of US$40 million over a four-year period. The transaction also includes US$155 million in potential milestone payments over the four years, payable in cash, Liontown shares or a combination of both at NEXT Lithium's election. Initial consideration payable upon the agreement becoming unconditional comprises US$5 million in cash and US$10 million in Liontown shares.

“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

Liontown stated that its Kathleen Valley operation remains its priority while pursuing growth through the Centenario transaction.

“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

Read the full announcement: NEXT Lithium Partners with Liontown for the Development and 100% Sale of the Centenario Lithium Project