Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) signed a cooperative development agreement with POSCO Argentina SAU, a subsidiary of South Korean giant, Pohang Iron and Steel Company (POSCO) (KRX: 005490).
Announced on Thursday, the collaboration is for the development of the Hombre North Lithium Project (HMN Li Project) in the Salta Province of Argentina, where both companies have significant operations.
The HMN Li Project is comprised of five key claim blocks spread out over 3,287 hectares. These include Alba Sabrina at 2089 hectares, Natalia Maria with 115 hectares, Viamonte/Norma Edith with 595 contiguous hectares, Gaston Enrique with 55 hectares, and Tramo, possessing 383 hectares.
The Norma Edith and Viamonte contiguous claim blocks are located in an area of dual jurisdiction where both POSCO in the Catamarca Province, and Lithium South in the Salta Province, have claims to the same ground but in different provinces. Preliminary data suggests that the Norma Edith and Viamonte area has significant potential to enhance the scope of the HMN Li Project.
In the spirit of finding a solution and to enable both companies to access the potential brine in this area, and to avoid a lengthy, costly, and uncertain legal undertaking, Lithium South and POSCO have agreed to collaboratively develop the Norma Edith and Viamonte claim blocks and share the brine produced on a 50/50 basis.
This agreement represents a pivotal solution to the historical provincial title issue, demonstrating a spirit of partnership and pragmatism. The agreement will undergo further legal undertakings and regulatory approvals as necessary.
Company President & CEO, Adrian F. C. Hobkirk, “We are immensely pleased to join forces with POSCO, a leader in #lithium and steel production. This partnership is a step forward for both companies".$LIS $LISMF $OROCF $TSLA #Mining #ElectricVehicles https://t.co/jjM4PTmS4g pic.twitter.com/F4dmd0hdLm
— Lithium South Development Corporation (@LithiumSouth) January 11, 2024
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The company is projecting a 40 percent increase in lithium recovery for the HMN Li Project, with expectations of reaching 70 percent.
In 2023, the company also increased its lithium resource by 175 percent. Independent consultants from Groundwater Insight in Halifax, Nova Scotia, compiled the report, which details the company’s recently upgraded lithium resource.
The property shares a border not only with POSCO, but also with the newly merged company between Allkem Limited and Livent Corporation, now called Arcadium Lithium plc (NYSE: ALTM) (ASX: LTM).
The new deal with POSCO allows for enhanced and improved competition for Lithium South.
In 2010, POSCO headquarters developed lithium extraction technology, initiating a period of investigation and feasibility studies for production. Seven years later, the company manufactured a pilot plant in South Korea with a capacity of 2,500 tons per year of lithium. Subsequently, the company installed it in Argentina, giving rise to POSCO Argentina.
Meanwhile, the Lithium South Development Company is focusing on its flagship lithium brine project in the Hombre Muerto North Lithium Project.
Lithium South has completed drilling on 75 percent of the project area, which includes the Alba Sabrina, Natalia Maria, and Tramo claim blocks. They have also delineated a resource of 1.58 million tons of Lithium Carbonate Equivalent (LCE), with 90 percent of the resource falling into the measured category, which is the highest resource category.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
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