Liontown to earn up to 100% of the Centenario brine project

Key points

• Liontown enters strategic partnership with NEXT Lithium
• Farm-in agreement to earn up to 100% of Centenario project
• Initial investment of US$15 million over 24 months
• Potential additional investment up to US$140 million

Full summary

Liontown Limited (ASX: LTR) has executed a binding farm-in agreement with NEXT Lithium Corp. to earn up to a 100% interest in the Centenario lithium brine exploration project in Salta Province, Argentina. The transaction provides Liontown an attractive low-cost entry into a strategic land holding in Argentina, offering complementary growth potential to its established hard-rock Kathleen Valley Operations in Western Australia. The staged farm-in structure allows Liontown to progressively increase its interest in the project by funding US$40 million of project expenditure over a four-year period and associated milestone payments. Initial consideration comprises US$5 million in cash and US$10 million in Liontown shares. The project is located in a prospective area for lithium brines, sitting in close geographic proximity to the Pozuelos-Pastos Grandes project and the Centenario-Ratones operation.

Outlook

Liontown aims to build its brine capability from the early stages of exploration, with potential for significant growth as the project progresses.