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Sqm Finalises Itech Partnership For Reynolds Range

mining
Apr 14, 2025
Article Source LogoAustralian Mining
Australian Mining

Sociedad Química y Minera de Chile (SQM), one of the world’s largest lithium chemicals producers, and iTech Minerals have finalised their farm-in agreement to develop the Reynolds Range project in the Northern Territory.

Originally announced in November 2024, the farm-in agreement outlines that SQM has the right to earn into Reynolds Range’s lithium mineral rights, while iTech will retain all the other minerals rights, including copper and gold.

SQM has completed due diligence on Reynolds Range and currently holds a 30 per cent interest in the project’s lithium mineral rights.

SQM has the option to earn up to 51 per cent in the lithium rights by spending $7 million on exploration, within 4.5 years of the commencement date, with a minimum spend of $2 million within the first 1.5 years.

SQM can also earn up to 70 per cent in Reynolds Range’s lithium mineral rights by paying an additional $3 million to iTech and defining a JORC (2012) compliant mineral resource estimate exceeding 50 million tonnes at one per cent lithium oxide or equivalent, or by spending an additional $15 million on exploration.

The payment of a one-off success fee will be paid to SQM by iTech following the completion of a definitive feasibility study on Reynolds Range, which will be calculated based on the lithium oxide content in Reynolds Range’s mineral resource.

“With SQM initially funding and managing all aspects of lithium exploration and development, iTech can focus its resources on exploration of the copper and gold potential of the Reynolds Range tenement package of which it retains 100 per cent ownership,” iTech managing director Mike Schwarz said.

“iTech looks forward to a valuable and productive working relationship with SQM as we explore this exciting new region side by side.”

SQM will operate Reynolds Range during the earn-in period and will create a technical committee alongside iTech to oversee Reynolds Range’s development. The committee will have equal representation of members from SQM and iTech. 

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