iTech Minerals Ltd (ASX:ITM) has partnered with global lithium chemical producing giant Sociedad Química y Minera de Chile to facilitate the development of the former’s Reynold’s Range lithium project in the Northern Territory.

iTech entered a binding Memorandum of Understanding with SQM Australia Pty Ltd – a subsidiary of Sociedad Química y Minera de Chile, and part of its international lithium division – to progress exploration at the play, which stretches across 375 square kilometres.

Following a period of due diligence, the agreement will allow SQM to earn an immediate 30% interest in the ITM’s lithium rights through the payment of $2 million, and will be able to boost this to a 51% investment by spending $7 million on exploration within 4.5 years of the commencement date – with $2 million to be spent in the first 1.5 years.

Finally, SQM will have the option of taking on 70% of the lithium rights if it pays an additional $3 million to ITM, and defines a JORC compliant mineral resource estimate beyond 50 million tonnes at1.0% Li2O or equivalent, or by spending an additional A$15million on exploration.

ITM managing director Mike Schwarz said the deal would enable the mineralisation at Reynolds Range to be fully exploited.

“The Reynolds Range Lithium Project is a new lithium pegmatite discovery in the NorthernTerritory,” he said.

With high grade rock chips of up to 8% Li2O at the GMF Pegmatite and known pegmatites outcropping over the entire 60km tenement package, iTech believes it will take the technical capability and financial resources of one of the world’s largest lithium chemical producers, like SQM, to fully capture the value of this exciting new project.”

ITM has been trading at 6.6 cents.

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