** Shares of iTech Minerals ITM.AX rise as much as 21.2% to A$0.080, their biggest intraday gain since July 23

** Mineral explorer enters into a memorandum of understanding with SQM Australia $(SQM)$ to develop the Reynolds Range Lithium Project in Northern Territory

** Under the agreement SQM can acquire up to 70% interest in the lithium rights of the Project by paying fees, while iTech retains rights to other minerals

** Stock hits its highest level since Sept. 3

** Over 3 mln shares change hands, 12.6x the 30-day avg

** Stock down 32.2% YTD, including current session's moves, as of 0027 GMT

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com;))