Power Minerals Ltd. has signed a non-binding term sheet with Summit Explore Corp. (Explore) to develop the world’s first multi-salar lithium project in Argentina’s lithium triangle.
The term sheet establishes a detailed framework of development work and the proposed grant of options to develop the Salta lithium project.
If successful, the partnership will deliver the world’s first multi-salar lithium project, blending compatible brines from five salt lakes: Incahuasi, Arizaro, Rincon, Positos, and Pular.
Under the proposed framework, both parties have 90 days to finalise a binding definitive agreement. Upon a notice to proceed (NTP), a joint venture will be formed, with Summit Explore holding a 59 per cent interest and acting as operator. Power Minerals will hold the remaining 41 per cent interest in the joint venture (JV).
Explore is also looking to acquire up to three additional regional lithium projects to fold into the JV. These acquisitions will be solely funded by Explore, expanding the project’s resource base at no extra cost to Power Minerals or dilution of its 41 per cent stake.
Explore will provide up to US$6 million (A$9.1 million) in strategic funding. This will cover water and mineral resource drilling to deliver a preliminary feasibility study (PFS).
As part of the PFS, brine samples will be tested for extraction efficiency at Summit’s Alpaca DLE demonstration facility in Santiago, Chile.
Explore’s 59 per cent share in the JV will only vest once the PFS is successfully delivered and an NTP is triggered.
Power Minerals Managing Director Mena Habib said: “The opportunity to work together with Explore and Summit is a pivotal step for Power towards producing commercial-scale volumes of high-quality lithium products from Power’s Argentinian lithium projects.”
Habib said the partnership allows for the application of Summit’s world leading DLE technology and the development of Power’s lithium asssets.
Summit’s patented denaLi DLE technology utilises advanced sorbents and AI-monitored process controls, providing a highly efficient and sustainable alternative to traditional solar evaporation ponds.
Summit Explore CEO Amanda Hall said: “This will be the world’s first multi-salar lithium project.
“By launching Summit Explore, our new development company, and working with Power Minerals we begin our land and expand strategy to become a major lithium producer in South America’s beautiful lithium triangle.”
