Greenwing Resources Ltd (ASX: GW1), an Australian critical minerals exploration and development company, has announced a non-binding term sheet for a strategic partnership with US-headquartered Atana Elements Inc. to advance its San Jorge Lithium Brine Project in Catamarca Province, Argentina. This proposed collaboration, following a competitive strategic investor process, aims to provide both technical expertise and external funding for the project’s development. Greenwing Resources operates projects including San Jorge Lithium Brine in Argentina, Graphmada graphite in Madagascar, and Que River polymetallic in Tasmania.
Under the proposed terms, Atana Elements Inc., a US-based critical minerals exploration and development company focused on identifying and advancing high-value mineral resources with particular expertise in lithium brines, will make an initial US$800,000 equity investment at a premium to Greenwing’s market price. This includes a US$300,000 initial payment that grants Atana a three-month exclusivity period for due diligence. Subsequently, Atana commits to an estimated US$15.3 million in staged development expenditure, earning up to a 37.5% interest in the San Jorge Project upon completion of specified milestones. The agreement also includes an option for Atana to acquire Greenwing’s remaining 62.5% project interest for US$125 million, contingent on the completion of the earn-in phases.
Greenwing Managing Director, Peter Wright, noted that the proposed transaction establishes a clear pathway to progress the San Jorge Project through to a preliminary feasibility study and offers a potential liquidity event at a valuation materially exceeding the company’s current market capitalisation. The partnership strategically aligns the San Jorge asset with the United States economy, which is actively addressing critical mineral vulnerabilities through initiatives such as Project Vault and bilateral agreements with Argentina, aiming to facilitate the development of its critical minerals sector, with lithium being a key focus. Greenwing will retain its broader portfolio, including the Que River Polymetallic Project and the Graphmada Graphite Mine, ensuring continued strategic flexibility.
