Enirgi Group, a global diversified industrial and specialty chemicals company, and Lithium S Corporation, a company engaged in the acquisition and exploration of greenfield lithium brines in Northern Argentina , announced that they have entered into a Memorandum of Understanding (the "MOU") with respect to a strategic collaboration on the exploration and development of lithium projects in Northern Argentina .
Enirgi Group, having recently announced its strategy to create a global lithium business and positive results of its Definitive Feasibility Study (the "DFS") for its planned 50,000 tonne per annum lithium carbonate processing plant at its Salar del Rincón project located in the province of Salta, Argentina (the "Rincón Project"), is pursuing its longer-term plan to increase its production capacity by scaling the Rincón Project into a larger Regional Processing Facility ("RPF") that will utilize Enirgi Group's game-changing DEP Technology for the development of the Salar del Rincón and other lithium brine salars.
"The proposed collaboration with Lithium S will accelerate Enirgi Group's previously announced global lithium strategy," noted Mr. Wayne Richardson , President & CEO of Enirgi Group.
Pursuant to the terms of the MOU, Enirgi Group has agreed in principle to assign its non-Rincón Properties into Lithium S in exchange for an equity stake in Lithium S following a successful Lithium S capital raise (the "Transaction").
Lithium S has entered into option agreements on a number of mining properties and exploration permits located on lithium brine deposits in Northern Argentina .
Lithium S and Enirgi Group plan to enter into a MSA, pursuant to which Enirgi Group will provide certain management and operational services to Lithium S through an experienced in-country team, inclusive of geologists specialized in lithium exploration and development in Argentina as well as local legal and administrative services.
The team will operate out of Enirgi Group's existing office in Salta, Argentina .
Following the completion of the Transaction, the Chairman of Lithium S shall be Wayne Richardson , Enirgi Group's President and CEO. Directors will also include the Honourable J. Trevor Eyton, Stephen Dattels and Juan Carlos Grosso , Lithium S's Argentine representative.
Enirgi Group and Lithium S's immediate strategic focus will be on the rapid exploration and development of its Salars that have the potential to economically supply lithium brine to the expanded RPF. Enirgi Group expects to undertake programs to analyse the feasibility of applying its DEP Technology for the purpose of developing the Properties, which may include concentrating the brines on the various exploration properties for the purpose of serving as additional feed to the RPF.
Upon recovery of the lithium, the brine will be recycled back into the Salars, which minimizes the impact on the environment. The DEP Technology has demonstrated recoveries in the range of 75%-85% range with brine sourced from the Rincón Project, which is well above the industry norms.
Enirgi Group's Chemical Division and Innovation Division are working on strategies to leverage the application of the DEP Technology to other lithium brine resources in the region. This may allow brines that were once deemed 'difficult to process' or uneconomical to become economically viable with the application of the DEP Technology.