XTC Lithium Limited (ASX: XTC) has signed a Letter of Intent (LOI) with American Battery Materials, Inc. (ABM) for a proposed partnership to develop the Carachi Lithium Project in Argentina’s Catamarca Province. The non-exclusive, non-binding LOI outlines the terms for ABM to potentially acquire up to a 50% interest in the project, subject to finalizing a definitive agreement and securing necessary approvals. Initially, ABM can secure a 10% stake by paying US$3.5 million within three months of signing the LOI. XTC intends to use these funds for corporate and project commitments, working capital, and to initiate a drilling program at Carachi.
Following the initial acquisition, ABM can acquire up to an additional 40% interest over the subsequent 30 months, based on a value model that adjusts a baseline valuation of US$35 million, considering the Lithium Carbonate Equivalent China Spot Price, XTC’s market capitalization, project resource size, and lithium concentration.
According to Mr. Graber, CEO of ABM, the partnership provides them access to a promising project in the heart of the Lithium Triangle. XTC Chairman John Featherby expressed excitement about collaborating with ABM, citing their expertise and commitment to sustainable resource development. The Carachi Lithium Project, comprising 21,900 hectares, is located within Argentina’s Lithium Triangle, a region recognized for its significant lithium deposits. The project sits adjacent to Lake Resources’ Kachi lithium project. The collaboration between XTC and ABM aims to capitalize on the growing global demand for lithium, driven by the expansion of the clean energy sector.
