Argentina Lithium & Energy Corp (TSX-V:LIT, OTCQX:LILIF) CEO Niko Cacos talked with Proactive about the company’s shift from exploration to development at its Rincon West lithium project in Argentina.
Cacos highlighted that the company has already announced its maiden resource estimate, marking a significant milestone.
He explained that Argentina Lithium is now focused on selecting a direct lithium extraction (DLE) partner, with pilot testing to follow.
Work is also ongoing on environmental baseline studies and preliminary engineering.
Cacos confirmed that financing discussions are underway to support the project through to the feasibility stage.
He expressed full confidence in the choice of DLE technology, noting its economic and environmental advantages, particularly given that neighbouring lithium operations, such as Rio Tinto's nearby $6 billion project, are using the same method.
Cacos also discussed the significance of the partnership with Stellantis, stating that the automotive company has been actively supporting Argentina Lithium’s progress and financing efforts.
Proactive: Hello. You're watching Proactive. I'm joined by Argentina Lithium CEO Niko Cacos. Niko, very good to speak with you. In a letter to shareholders today, you said Argentina Lithium is now shifting from exploration to development at Rincon West. What are the biggest milestones investors should be keeping an eye on over the next year?
Niko Cacos: Well, the first milestone we kicked off, we announced our main resource calculation to and we announced that just a couple of weeks ago. I think that sets the stage for us going forward. Now, going forward. And long the the work that we've been doing over the past year includes, you know, ensuring that we have a regular and predictable flow for all the permitting.
So we've been engaging with all the regulators in the province and our Argentina. We also have been working very diligently with direct lithium extraction companies, various ones. We've examined a whole plethora of them, and now we've narrowed this choice down to just a very few. And we're at a point where we're going to start selecting our direct lithium extraction company and commence with a pilot testing.
We've been doing a lot of baseline environmental work. There's a lot of preliminary engineering work that's been underway. And we're also on, have financing underway to ensure that we're funded from here all the way to feasibility study.
Niko, how confident are you that direct lithium extraction will prove to be the right choice, technically and economically for the project?
I'm 100% certain about that. Number one, at the Rincon West project, our neighbor there is Rio Tinto. They've invested close to $6 billion in developing. That's one of the world's largest operations in terms of producing lithium from the salt lake brine there. And it's in the same salt lake brine where we are, and they're using direct lithium extraction.
Other players in that area are also using direct lithium extraction. I believe this is the way of the future. It allows us to extract lithium much more economically, much more quickly. And from an environmental standpoint, there's hardly any environmental footprint. So it's a much more sustainable approach to obtain lithium.
Your partnership with Stellantis is a big validation for the company. How does that relationship help strengthen both financing and long-term growth prospects?
Our partnership with Stellantis, I'm very proud of that—proud to have a huge global automotive company that validates the quality of our projects. The offtake deal that they have with us means we will supply lithium for their use.
They've been there every step of the way with us, assisting us where assistance is needed, with financings, introducing us to their financial network, and so forth. It very much validates what we're doing. They have a strong belief in the quality of the projects that we have. And to have something like that come from a top-tier automotive maker speaks volumes.
Niko, you're targeting a preliminary economic assessment in early 2026. What needs to happen between now and then to get Rincon West ready for that step?
Well, there's a few things that need to happen. Number one, I think we're going to get to the point where we're going to select the DLE provider before we do that. And second of all is funding. So we need the funding to ensure that we've got a path forward. We've got a number of prospects right now and are hoping that we can close in on that relatively soon.
Quotes have been lightly edited for clarity and style