Lithium Energy granted final permit for project in Argentina

Australia’s Lithium Energy Limited (ASX: LEL) said on Wednesday it had received final environmental impact assessment (EIA) approval for the next phase of exploration and evaluation at its Solaroz lithium brine project in Argentina.

The approvals cover the Central and Northern blocks of the project, which host the majority of Solaroz’s existing lithium resources. These blocks will also be the focus of upcoming activities under the next phase of development.

The EIA milestone aligns with Lithium Energy’s previously announced agreement to sell its entire stake in Solaroz to CNGR Netherlands New Energy Technology (CNNET) for $63 million (about A$100 million) in cash.

Under the terms of the agreement, CNNET has committed to funding local operations and the next stages of development at Solaroz, beginning in 2023. CNNET will also provide up to $15 million (A$24m) in loan funding to support the project.

Both companies are currently working together to establish a suitable work program aligned with the approved environmental assessment.

The Solaroz project is located in northwestern Argentina, within South America’s Lithium Triangle, a region known for hosting some of the world’s largest lithium brine deposits.

In addition to the Solaroz project, Lithium Energy owns the Burke graphite project in Queensland, Australia.