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
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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.
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.
