Lithium Energy secured EIA approval for the Solaroz Lithium Brine Project in Argentina, covering 10,666 hectares. They plan to divest a 90% stake to CNNET for $63 million, with future development funded by a loan up to $15 million. The project is strategically positioned in the lithium-rich Salar de Olaroz Basin.
Lithium Energy has secured environmental impact assessment (EIA) approval for the Solaroz Lithium Brine Project in Argentina. This approval pertains to the central and northern blocks, encompassing 10,666 hectares and holding the majority of the project’s lithium resources. With previous EIA approvals in place for other concessions, exploration can now resume across all areas of Solaroz.
In April 2024, Lithium Energy agreed to divest its 90% stake in the Solaroz project to Chinese subsidiary CNGR Netherlands New Energy Technology (CNNET). After gaining necessary Chinese regulatory approvals in June 2024, shareholders of Lithium Energy also approved the sale in August 2024. According to an amended agreement, Lithium Energy will sell its entire interest for approximately $63 million (A$100.58 million).
Subsequent to shareholder approval on January 15, 2025, CNNET will finance the future development of Solaroz from January 1, 2025, leveraging a loan structure of up to $15 million. The two companies will collaborate on a work program aligned with the approved EIAs, with updates on progress expected once finalized.
The Solaroz Lithium Project spans 12,000 hectares within the lithium-rich Salar de Olaroz Basin, part of South America’s ‘Lithium Triangle’. Lithium Energy shares rights in this basin with Arcadium Lithium and Lithium Argentina, and was exploring lithium carbonate production and extraction technologies before the sale agreement with CNNET.
Lithium Energy’s approval of the EIA is a critical step towards advancing its exploration and development efforts within the lithium sector. The Solaroz project is strategically located in Argentina, joining a select area known for rich lithium deposits, which are essential for battery production. The recent divestment to CNGR highlights international interest in lithium resources and the importance of regulatory compliance for foreign investment.
Lithium Energy’s successful EIA approval marks a significant milestone for the Solaroz project, promoting exploration continuity. The divestment to CNNET and financial backing for future developments reinforces the increasing global demand for lithium. As the project progresses, updates will provide insights into exploration, evaluation, and production potential in this vital market.
Original Source: www.mining-technology.com
