Latin Resources Ltd (ASX:LRS) is entering a transformational joint venture agreement with Argentinian investment group Integra Capital S.A. which will spend up to A$1.4 million to earn a 50% interest in Latin’s Catamarca lithium pegmatite projects in Argentina.
Integra has successfully completed its due diligence on the projects and the companies are expected to sign the final joint venture agreement this month.
One of Argentina’s largest lithium explorers
Founded in 1995, Integra has developed projects and ventures with private institutions and investors for more than US$16.5 billion in financing and investment projects.
Integra is one of Argentina’s largest lithium explorers and holds over 400,000 hectares of lithium brines projects in Jujuy and Catamarca provinces.
This company was attracted to Latin’s highly prospective and large-scale lithium tenement portfolio in Argentina, as well as Latin’s renowned 10-year operational experience in Latin America.
Formidable team to rapidly develop projects
Latin managing director Chris Gale described the completion of the transaction with Integra as an excellent outcome for Latin.
He said: “We welcome Integra as our partner and this joint venture places Latin in a position to become a significant lithium player to create strong shareholder value at our highly-prospective Argentinian lithium pegmatite projects.
“Integra’s financial capacity combined with our track record and experience in Latin America makes a formidable team with the ability to rapidly explore and develop our lithium projects.”
Joint venture agreement
Following the completion of signing the joint venture agreement, Integra will exercise its option to become Latin’s largest corporate shareholder through an equity investment to take a cornerstone 10% holding.
Latin will transfer all the Catamarca project assets to a new company to be incorporated in Argentina.
Integra will earn a 50% interest in the new company by spending up to US$1 million (A$1.4 million) to explore and develop the Catamarca lithium pegmatite projects.
Following the release of a maiden JORC resource on the projects, the joint venture focus will turn to project development, including feasibility, engineering and metallurgy studies to produce a lithium spodumene concentrate.
Under the joint venture, Latin will be free-carried through initial exploration with financing for the construction of the processing plant to be in line with percentage ownership between Integra and Latin of the project partnership at the time of the Final Investment Decision.
Moving forward to define a JORC resource
Gale added: “We can now move forward rapidly to define a JORC resource and then commence the development of these great projects with a dependable partner.
“This transaction will also be reinforced by Integra becoming a cornerstone investor in Latin which displays confidence in our board, management and our other projects in South America.”