Lithium Chile Applies For Production License Under New Joint Venture

FULL DISCLOSURE: The Deep Dive is long the equity of Lithium Chile.

Lithium Chile (TSXV: LITH) is looking to move from being an explorer to a producer of lithium. The company this morning indicated it has applied for a Special Lithium Operation Contract as part of a new joint venture with a subsidiary of Grupo Errazuriz.

The license, which Lithium Chile applied for through its Kairos Inversions SPA subsidiary, would allow for the production of lithium at the Coipasa salt flat in Chile. The flat, found 3,700 metres above sea level, is found in a border area between Chile and Bolivia

Special Lithium Operational Contracts, referred to as CEOL’s, were introduced by Chile in 2024 for six priority saline systems under Chile’s National Lithium Strategy. As part of the program, company’s must demonstrate they have experience in the lithium industry value chain or in mining operations, as well as the financial capability to develop the project and control concessions over at least 80% of the area in a designated priority salar.

READ: Lithium Chile Enters Binding LOI To Sell Arizaro For C$250 Million, Proceeds To Be Issued To Shareholders Via Special Dividend

Once the requirements of the application are confirmed to have been met, the Mining Ministry will then provide applications with the CEOL model. If the model is agreed to, the two parties are required to conduct an indigenous consultation process, and then will be issued a supreme decree that outlines requirements and conditions. A public tender is not required if terms are reached under this process.

“This joint application meets, and indeed exceeds, the government’s criteria in terms of industry experience, financial capability, and control over mining concessions within the prioritized saline systems. For the Coipasa salt flat, our joint venture covers 89.83% of the Salar de Coipasa polygon, encompassing both Exploration and Exploitation concessions which allows for the fast tracking of the CEOL permit,” commented Francisco Javier Errazuriz, President of the Errazuriz Group.

Lithium Chile last traded at $0.68 on the TSX Venture.


FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Lithium Chile. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Video Articles

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Arizona Metals: The Disappointing Kay Mine Resource Estimate

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Lithium Chile Outlines Pre-Tax US$3.8 Billion NPV(8%) For Arizaro Project In Pre-Feasibility Study

Lithium Chile (TSXV: LITH) has completed a pre-feasibility study on its flagship Arizaro Project in...
Tuesday, July 23, 2024, 09:52:44 AM

Lithium Chile Grows Resource Estimate By 24% At Salar de Arizaro

Lithium Chile (CSE: LITH) has seen its resource estimate at its flagship Salar de Arizaro...
Tuesday, April 9, 2024, 09:47:37 AM

Lithium Chile Sees Lithium Grades At Two Wells Increase Over 158% After Resampling At Salar de Arizaro

FULL DISCLOSURE: This is sponsored content for Lithium Chile. Lithium Chile (TSXV: LITH) this morning...

Monday, July 10, 2023, 08:57:55 AM

Lithium Chile Farms Out Four Chile Properties, Exploration Spend Projected To Hit US$20 Million

A major European mining group apparently has interest in Chilean lithium. Lithium Chile (TSXV: LITH)...
Tuesday, March 5, 2024, 08:40:06 AM

Lithium Chile To Deliver Pre-Feasibility Study For Arizaro Project In April 2024

Just weeks after delivering a positive preliminary economic assessment for its Arizaro Project in Argentina,...
Tuesday, October 17, 2023, 08:37:19 AM