Under the binding Agreement, Talga has granted SQM the right to sole fund exploration expenditure of up to US$19.0m over the next 7 years on Aero for up to a 70% ownership interest in the project. Talga also will be paid a management fee for each stage of the potential earn-in arrangement, and a success fee if a decision to mine on Aero is made. Talga retains all rights and obligations in relation to graphite minerals within Aero.
SQM has completed extensive due diligence on Aero including site visits, and under the Agreement the parties may agree to collaborate on potential new lithium areas and projects in Sweden. The Agreement is subject to Swedish foreign direct investment clearance. Key terms of the Agreement are set out in Schedule 1 to this announcement.
Project background
Aero forms part of Talga’s suite of battery metal assets separate to its advanced stage Li-ion battery graphite anode business (“Vittangi Anode Project”). Aero covers 270km2 area south and east from Gällivare where Talga has found lithium-prospective pegmatites over ~50km total strike with surface sample results up to 1.9% Li2O (ASX:TLG 29 August 2023). Lithium is classified as a strategic raw material and subject to domestic extraction targets under the EU Critical Raw Materials Act.
Talga Managing Director, Mark Thompson, commented: “We are delighted to partner with SQM on our Aero lithium project in Sweden, which provides an important chance to build a European lithium supply for the green transition and EU localisation objectives.
As one of the few potentially large-scale lithium hard rock opportunities in Europe, Aero might be significant to the region’s battery and electric vehicle industry.”
SQM International Lithium division CEO, Mark Fones, commented: “We are pleased to enter into this agreement, which represents our dedicated efforts to build a global and competitive lithium asset portfolio. Expanding into new and promising jurisdictions, such as Sweden, has been a strategic goal for us, and partnering with Talga, who has demonstrated expertise in the region, further enhances this achievement.”
Leave a Reply