Lithium One's CEO PATRICK HIGHSMITH discusses the Company's
Strategic Partnership agreement for the Sal de Vida project.
Unlike more traditional metals, lithium is not a broadly traded commodity. Lithium trades by contract from a limited number of global producers and as such, for a company planning lithium production, securing a market for the end product is critical. For a junior company, an ideal off-take agreement is one that includes a strategic partner who can also secure financial support for the development of the project.
On June 4th, 2010 Lithium One completed its first strategic partner agreement by signing an Evaluation Option and Joint Venture Company Agreement with
Korea Resources Corporation
("KORES") to develop the Company's Sal de Vida Lithium Brine Project in Argentina. Additionally,
KORES signed an MOU with GS Caltex
and LG International
to complete a consortium that will joint venture with Lithium One.
Martin Rowley, Chairman of Lithium One commented on the implications of the arrangement:
"This is a landmark agreement for Lithium One that confirms Sal de Vida as a world-leading lithium and potash brine project. KORES have completed extensive due diligence before entering into this arrangement, confirming the quality of the Project and our management team. A key component of our strategy has been to secure a major joint venture partner with the financial, technical and commercial strength and expertise to work with us to jointly develop Sal de Vida. The Korean consortium of KORES, GS Caltex, and LG International far exceeds our expectations in this regard. This consortium will yield significant dividends during the feasibility stage by providing expertise and input into our further understanding of end-user demand and product specification requirements of the high quality lithium market. With our Korean partners, our team now has all the resources necessary to ensure delivery of an outstanding new operation that can supply a low-cost product to the global battery market in a timeframe to meet the rapidly growing demand for lithium battery packs for electric and hybrid vehicles."
For additional details please see the original news release. (click for more info)
Lithium One signs Evaluation Option and Joint Venture Company Agreement with KORES
