Great Southern Copper PLC (LSE:GSCU) (GSC) has signed a binding term sheet to acquire the Monti Lithium project in the Salar de Atacama region in Chile.
Salar de Atacama is Chile's premier lithium brine production region, GSC added, with the concession in an ideal location with excellent infrastructure for power, transport and port facilities.
Chile is currently the world's second-largest producer of lithium after Australia, according to GSC.
“Unlike Australia where lithium is recovered from spodumene-rich pegmatites, lithium in Chile is recovered from salt brine solutions located within and beneath high-altitude geographic depressions known as 'salars' or salt lakes.”
Monti Lithium comprises 81 concession applications for a total combined concession area of 235 sq km (23,500 ha).
GSC eventually can take 100% ownership of the concession, though the initial payment is just US$10,000 with further annual cash and share payments over three years for a total consideration value of US$2.26 million (£1.8 million).
Sam Garrett, GSC’s chief executive, said: "We are very excited by the scale of the opportunity that the Monti Lithium project presents and to enter the highly competitive lithium exploration space in Chile.
"Chile is the world's largest producer of copper and the second-largest producer of lithium.
“Both metals are considered vital commodities as the world aims to reduce its reliance on fossil fuels and transition to green energy.
“As such, the Monti Lithium Project is a natural fit to complement GSC's two copper projects at San Lorenzo and Especularita.”