California-based mining technology company Lilac Solutions is looking to get more involved in the lithium business and recently signed an agreement to acquire a stake in the Kachi asset in Argentina and is in the process of raising funds to ramp up its brine lithium extraction technology.
Lilac’s technology relies on ion exchange to extract lithium from brines without using the evaporation ponds required for traditional lithium extraction and far less environmentally friendly reagents and materials. This means that project development can be accelerated and recovery increased, while at the same time causing far less environmental damage.
BNamericas takes a look at the partnerships and agreements the US company entered into in South America last year to strengthen its activities in this sector.
Sea resources
Earlier this month, Lilac and Australian junior mining company Lake Resources entered into an earn-in partnership with approximately $ 50 million in technology and funding to develop the $ 544 million Kachi project in the northern Argentine province of Catamarca.
Lilac can acquire up to 25% of the project through a three-step operation. The first 10% will be earned through the commitment to finance the completion of the technology tests in the project, a further 10% through the fulfillment of the test criteria with the demonstration plant, which will be built at the site in Q1 22, and a further 5% through the achievement of high standards regarding the chemical product with certain potential acceptance partners.
“As soon as Lilac has earned its 25% stake, Lake and Lilac will contribute proportionally to the financing of the development of the Kachi project,” said the US company in a press release.
Kachi’s final feasibility study and environmental impact assessment is expected to be completed in Q2 22. The project aims to produce 25,500 tons of lithium carbonate per year from 2024.
Lithium South development
The Vancouver-based junior company is working with Lilac to test Direct Lithium Extraction (DLE) processes on the 93 million. In April, the company reported 99% lithium recovery with very low reagent consumption in tests.
The company is also evaluating the use of the DLE processes developed by Florida-based technology company Eon Minerals and Chinese company Chengdu Chemphys Chemical Industry.
Alpha lithium
Since April, Lilac has also been working with Alpha Lithium from Vancouver on the Tolillar project in the Argentine province of Salta.
The mining technology company will evaluate 2,000 liters of raw brine from the Tolillar Salar. In late June, Alpha Lithium said in a press release that raw brines “have finally cleared customs in San Francisco and arrived at Lilac’s California laboratory testing facility,” but the results have not yet been reported.
Enami
In 2020, Lilac also held talks with Chile’s national mining company, Enami, to test its technology on brines from the Infieles and Aguilar salars in the country’s Atacama region.
BNamericas contacted Enami to see the status of these conversations, but no one at the company was available for comment.
financing
Lilac recently raised $ 150 million to ramp up production of its ion exchange system, expand its facilities and employees on site, and deploy its technology in other countries.
Investors from Breakthrough Energy Ventures, led by Bill Gates, are involved in the financing. Last year the fund made a $ 20 million investment in the company.
Photo credit: Lithium South
