Cosmos Exploration Ltd (ASX:C1X) taken an important step towards unlocking Bolivia’s potential for lithium brine, signing an exclusive option agreement to take on a private development company in the heart of the lithium triangle.

Today’s agreement will see Cosmos acquire 100% of EAU Lithium Pty Ltd, a company also engaged in a technology partnership agreement with Vulcan Energy Resources (ASX:VUL) in addition to a recently signed agreement with Bolivia’s state-owned lithium company, Yacimientos de Litio Bolivianos (YLB).

Per the latter, EAU would be able to test lithium brines from Salar de Coipasa, Salar de Empexa and Salar de Pastos Grandes, with the potential for expansion to other salars across Bolivia as a precursor to a long-term JV partnership with YLB.

The Bolivian government wants to use the country’s notable lithium resources and become a supply chain leader in the mineral, using YLB as a vehicle.

However, high magnesium content in the Salars has proven challenging for extraction using solar evaporation with chemicals; YLB believes it can overcome this by partnering with EAU to leverage Vulcan’s direct lithium extraction (DLE) technology.

The brines in question are being transported to Germany for testing with VULSORB A-DLE technology, and if successful, the tech agreement could lead to the signing of industrialisation agreements to facilitate a joint venture partnership between YLB and EAU.

Cosmos executive chairman Jeremy Robinson said the acquisition represented an important step for the company.

“This agreement is an exciting step for Cosmos Exploration as we align ourselves with EAU Lithium and their existing partnerships with YLB in Bolivia and Vulcan Energy Resources,” he said.

“EAU’s recently signed technology agreement gives them the opportunity to testlithium brines from Bolivia’s premier salt lakes using Vulcan Energy’s state-of-the-art VULSORB technology.

“While the results of this testing will determine the next steps, the potential for this to progress into an industrialisation agreement in a joint venture for the processing of brines is a significant milestone in the sustainable development of Bolivia’s world-leading lithium resources.”

Cosmos shares rose on the news, and at 10:44 AEDT, they were trading at 4.7 cents – an increase of 34.29% since the market opened.

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