PERTH (miningweekly.com) – Minerals explorer BMG Resources will form a joint venture (JV) to explore and potentially develop three lithium brine projects in Chile.

The ASX-listed company signed an exclusive agreement with the owners of Lithium Chile Spa (LCS), which holds the lithium brine properties in the Salar de Atacama and surrounding areas in northern Chile.

Under the JV agreement, BMG will pay $800 000 as an initial consideration, with the first $100 000 due within five days of inking the term sheet. BMG will provide up to $2.5-million in funding to the JV company for a further 30% interest in the JV, bringing its total interest to 50%.

“BMG is excited to be partnering with LCS in the best lithium province in the world. The fundamentals for the lithium sector remain very positive with strong demand growth from battery requirements for electric vehicles, and there is no better entry point than the world’s highest grade, lowest cost brine deposits in northern Chile,” said BMG MD Bruce McCracken.

“We are working to fast-track the establishment of the JV and progress the work programme as quickly as possible. This is a transformative moment for the company,” he added.

The three initial project areas are within the lithium triangle, located in the world’s highest-grade lithium district. The initial projects comprise areas of over 12 000 ha in total.

BMG is proposing to immediately undertake geophysics in the Salar West central and southern areas as part of its due diligence process, to define the aquifer target zones for the initial drilling programme.