Australian junior iTech Minerals has secured a partnership with Chilean lithium giant SQM to develop its newly discovered Reynolds Range lithium project in the Northern Territory.

The partnership marks a new phase for iTech, as it looks to leverage SQM’s technical expertise and financial resources to explore and develop the promising new discovery.

The Reynolds Range project, which spans a 60 km tenement package, has yielded high-grade rock chip samples with lithium oxide concentrations of up to 8% at the GMF pegmatite. Known pegmatite outcrops extend across the entire tenement, suggesting considerable potential for further exploration.

Given the scale of the discovery, iTech believes that the involvement of SQM – one of the world’s largest producers of lithium chemicals – is essential to unlocking the full value of the project.

Under the terms of the partnership, SQM will initially fund and manage all aspects of lithium exploration and development. This arrangement allows iTech to focus its resources on exploring the copper and gold potential within the broader Reynolds Range tenement package, which it retains 100% ownership of.

“iTech looks forward to a valuable and productive working relationship with SQM as we explore this exciting new region side by side,” said MD Mike Schwarz.

Upon successful completion of due diligence, SQM can earn an immediate 30% interest in the lithium rights by paying iTech an initial A$2-million. An unincorporated joint venture (JV) will then be established, marking the beginning of the formal partnership.

SQM can earn up to 51% of the lithium rights by spending A$7-million on exploration within 4.5 years of the JV's commencement. The agreement stipulates a minimum spend of A$2-million within the first 1.5 years to ensure rapid progress.

Should SQM choose to proceed to this stage, they can earn up to 70% of the lithium rights by defining a Joint Ore Reserves Committee-compliant mineral resource estimate exceeding 50-million tonnes at 1.0% lithium oxide or equivalent, or by spending an additional A$15-million on exploration.