Lithium Chile upping stake in Argentine project to 80%

Canadian company Lithium Chile will own 80% of the Salar de Arizaro lithium project in the Argentine province of Salta once it completes the acquisition of an additional 17.8% stake from Litiar during the first half of next year.

Arizaro has a pre-tax net present value of US$3.8bn and could produce 25,000t/y of battery-grade lithium carbonate over 20 years, according to a prefeasibility study submitted in July.

The project will use direct extraction technology that is being tested in a pilot plant and through laboratory tests that have confirmed the effectiveness of extracting lithium chloride from the Arizaro brine to convert it into lithium carbonate.

Lithium Chile will pay Cdn$2.7mn in cash (US$1.9mn) plus 19mn shares for the increased stake in the project, which is currently undergoing socio-environmental assessment and permitting, according to a release.

The company has a partnership with Portofino Resources to continue exploring the site and increase lithium resources. 

Arizaro has an estimated 4.1Mt of lithium carbonate equivalent in indicated and inferred resources.

In addition to Arizaro, which covers 29,245ha, the Calgary-based company owns 106,118ha of mining concessions with lithium potential in Chile, including the Laguna Blanca, Los Morros and Coipasa projects, among others.

Despite low lithium prices this year, Lithium Chile says it is confident there will be a shortage of the mineral amid growing demand, which would push lithium carbonate prices to a maximum in 2030.