Liontown Resources enters Argentine lithium brine market

Liontown Resources has entered a binding agreement with NEXT Lithium Corp to acquire a staged interest in the Centenario lithium brine project located in Argentina’s Salta province. This move marks the company’s first expansion into lithium brine assets, complementing its existing hard-rock operations in Western Australia.

The transaction provides a pathway for Liontown to acquire up to full ownership of the early-stage project. Initial consideration includes US$5 million in cash and US$10 million in Liontown shares. Under the agreement, Liontown plans to fund an initial US$15 million work program over the next 12 to 24 months. This expenditure could earn the company a 49 per cent interest in the project.

Further investment could increase Liontown’s stake to 51 per cent and subsequently to 75 per cent. If the company reaches 75 per cent ownership, it must acquire the remaining interest through a resource-linked payment capped at US$125 million. Liontown Managing Director and CEO Tony Ottaviano stated that the transaction offers a “low-cost entry into lithium brine,” which is a primary global source of lithium.