Liontown Limited announced that it has entered into a binding staged farm-in agreement with NEXT Lithium Corp. to progressively acquire up to a 100% interest in the Centenario lithium brine exploration project in Salta Province, Argentina, through project expenditures and milestone-based payments.
Under the agreement, the initial consideration comprises US$5 million in cash and US$10 million worth of Liontown shares. Liontown may subsequently spend up to US$40 million on project development over four years, while additional payments to NEXT Lithium will be linked to project resource milestones.
In the first stage, Liontown plans to invest US$15 million over the next 12–24 months in drilling and related exploration activities, after which it may earn a 49% interest in the project. Liontown may then make further investments to progressively increase its ownership to 51% and 75%. In the final stage, Liontown may acquire the remaining 25% interest and obtain 100% ownership of the Centenario project, with the final payment linked to the project’s resource size.
The Centenario project is located in Salta Province, Argentina, and is currently at the exploration stage. Liontown said the next phase of work will include drilling, resource assessment and further project development studies.
