Uranium One Holding, part of Rosatom’s subsidiary Tenex, has partnered with Alpha Lithium for the development of a Tolillar lithium deposit in Argentina.

Under the deal, the companies will establish a joint venture (JV) to develop 27,500ha deposit situated in the Argentine province of Salta within the lithium triangle.

As per the terms of the deal, Uranium One will make an investment of $30m to purchase 15% stake in Alpha One Lithium. The remaining 85% stake will be controlled by Alpha Lithium.

Alpha One Lithium’s main asset consists of 100% interest in the Argentine project company Alpha Argentina, which owns the exploration and production rights for the Tolillar lithium deposit.

Uranium One will also provided with an option to invest an additional $185m to increase its stake in Alpha One Lithium to 50%, following completion of a bankable feasibility study on the project.

Uranium One Group president Andrey Shutov said: “The project in Argentina will be implemented in accordance with the principles of sustainable development.

“We plan to develop the deposit, taking into account the interests of local communities, using innovative technologies that have minimal impact on the environment, supporting scientific and technical cooperation programs. We are currently evaluating other rare and important metal deposits.”

Uranium One is eligible for 100% off-take of the project’s production, upon exercise of the option.

The transaction is part of Uranium One’s business diversification strategy, which allows to develop rare and rare-earth important metals associated with the supply of raw materials to high-tech industries.

Rothschild is serving as an exclusive financial advisor, while Freshfields as a legal advisor to Uranium One.

Uranium One, which is an international group of companies, has a diverse portfolio of assets across the world including in Kazakhstan, Tanzania and Namibia.