LSC Lithium Corp. said July 30 that it agreed to form a joint venture with private oil and gas company Pluspetrol SA. unit Litica Resources to explore and develop tenements on the Salar de Arizaro lithium project in Argentina's Salta province.
The agreement is part of Litica's initial expansion into the lithium sector. The company agreed to commit US$6.9 million to LSC and the joint venture over a three-stage exploration program to maintain its 60% ownership, with LSC holding the remaining 40%.
Litica will initially pay US$625,000 to LSC, which will contribute 22,376 hectares that it controls in the Salar de Arizaro into a newly formed joint venture company.
Litica will then spend US$1.6 million in the first phase and US$2.50 million in the second phase and will spend US$1.5 million and pay US$625,000 to LSC in the third phase.
Litica will operate the Arizaro project and hold the majority of the seats on the joint venture's board.
An initial resource statement at Arizaro is expected at the end of the three-stage program. The transaction is expected to close within 90 days of a 30-day due diligence period.