Kali expands in land of lithium giants

Kali Metals has announced a significant expansion of its joint venture (JV) with SQM, aimed at boosting its exploration projects in Western Australia’s Pilbara region.

The new agreement includes the acquisition of additional strategic tenements and amendments to the existing earn-in agreement, enhancing the company’s position in the highly prospective lithium region.

The expansion adds 129km² to Kali’s Pilbara landholding, incorporating DOM’s Hill and Pear Creek exploration licences.

“Kali is delighted to secure (the exploration licences) all of which are strategically placed to allow Kali to expand its exploration plans in the highly prospective lithium region of the Pilbara,” Kali Metals managing director Paul Adams said.

“As flagged in its prospectus, the company has been assessing and reviewing a number of opportunities to expand its portfolio of assets and is pleased to be able to execute these agreements.

“This acquisition will increase our Pilbara lithium footprint and the potential of delivering value through the discovery of a lithium resource in the Pilbara.”

Kali has also renegotiated its earn-in agreement with SQM.

SQM is now required to invest $500,000 in exploration by December 2025 to maintain its 30 per cent interest in DOM’s Hill and Pear Creek.

The JV also increased SQM’s total expenditure commitment by $1 million to $4.25 million, extending its earning right to 50 per cent by December 2026.

“Kali has enjoyed a successful working relationship with SQM in the Pilbara, and we look forward to exploring with SQM on our new and existing tenements,” Adams said.

The company says it is well placed to capitalise on cost synergies and efficiencies to streamline their exploration in the highly prospective lithium region which is contiguous to Kali’s existing tenement in the Pilbara.

The new tenements in the Pilbara give Kali an increased landholding in what is described as the land of the lithium giants.