Neo Lithium Corp. is in talks for a US$490 million deal to fund development of its Tres Quebradas lithium mine in Argentina, Bloomberg News reported Sept. 4, citing CEO Waldo Perez.

The Toronto-based company, which is looking to tap into the recent lithium boom in the South American country, is in discussions with potential U.S., European and Asian joint venture partners for the project.

"We're looking for a partner," Perez said. "And we hope to close a deal by the end of year."

The company will use the funds to advance the project in its entirety, and does not plan to seek off-take agreements, the executive added.

A test plant for processing the lithium is expected to be ready in the coming months. The company plans to operate the plant remotely in Chile until February 2019, when it will be moved to Catamarca.

Neo Lithium is targeting to produce 35,000 tons of lithium carbonate by 2023, as well as aiming for production of lithium hydroxide.

The company will begin the process to outsource a feasibility study in November, with the construction for the main plant slated to start next year.