Ganfeng Lithium's new lithium chloride production plant in Argentina, is set to officially open on February 12, marking a significant milestone in the Mariana Lithium Project.
The plant, a subsidiary project of China’s Ganfeng Lithium Group, will initially produce 20,000 tons of lithium chloride annually.
Ganfeng Lithium will source the raw material for the plant from the Salar del Llullaillaco, a remote salt flat located 430 kilometers from Salta, in the Puna region. There, the brine is pre-concentrated through solar evaporation, with further purification and crystallization occurring at the Güemes site. The resulting high-purity lithium chloride will be shipped to China for battery production.
For Canadian-listed company TNR Gold Corp (TSX-V:TNR, OTC:TRRXF), Mariana represents a key component of its royalty-focused business, as it moves toward receiving its first royalty payments from the project in the coming months.
TNR Gold, which holds a 1.5% NSR royalty on the Mariana Lithium Project, will also benefit from the project’s success. As part of its agreement, Ganfeng's subsidiary, Litio Minera Argentina (LMA), has the option to repurchase 1% of the NSR royalty. TNR’s share of the royalty will be reduced to 0.45%, with 0.05% of that royalty being allocated to one of TNR’s shareholders.
Kirill Klip, CEO of TNR Gold, expressed excitement about the potential cash flow from this project and the growth it will bring.
"We are looking forward to our first NSR royalty cash flow payments from the Mariana Lithium Project," Klip added, noting that TNR does not have to contribute any capital for the development of Mariana or its other royalty holdings.
“The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cashflows to contribute significant value for our shareholders."