Wealth Minerals Ltd. signed a memorandum of understanding granting Rosatom subsidiary Uranium One Group an option to acquire up to 51% of its Atacama lithium project in Chile.
The MOU gives Uranium One the right to match the terms of any proposed alternative offer and provides that the companies will enter into an off-take agreement under which Uranium One will have the right to buy all of the products from the project.
Closing is subject to various conditions including signing a definitive agreement and Uranium One being satisfied with the results of its due diligence.
Wealth Minerals said Oct. 15 that it expects the deal to increase cooperation between the parties for the development of lithium projects, with development expected to include applying Uranium One's ecologically friendly sorption lithium-extraction technology.
Russian state-owned Rosatom had offered the technology to the Chilean government in December 2018.
In February, Wealth Minerals said it was refocusing its efforts on the Atacama and Trinity lithium projects in Chile after reviewing its portfolio.