XTC Lithium Eyes 50% Stake Sale in Carachi Project Amid Asset Divestment
XTC Lithium Limited is progressing its Carachi Lithium Project in Argentina through strategic partnership discussions and environmental assessments, while completing the sale of its Southern Cross assets in Western Australia.
- Ongoing partnership talks with American Battery Materials for Carachi Project
- Environmental Impact Assessment progressing with local consultancy support
- Sale of Southern Cross gold assets finalized post-quarter
- Company managing cash flow with available financing facilities
- Trading remains suspended pending reinstatement
Strategic Partnership Developments
XTC Lithium Limited (ASX, XTC) continues to advance its flagship Carachi Lithium Project in Argentina’s Catamarca province, located within the globally significant Lithium Triangle. The company has signed a non-binding Letter of Intent with American Battery Materials, Inc. (ABM), a US-based lithium developer, outlining terms for ABM to acquire up to a 50% stake in the project. This potential partnership could accelerate exploration and development efforts, contingent on final agreements and regulatory approvals.
Beyond ABM, XTC is also engaging with other parties familiar with Argentine mining conditions to bolster operational support, signaling a strategic approach to de-risking and expanding its project footprint.
Environmental and Operational Progress
In parallel with partnership talks, XTC has engaged Grupo Territorio Sasu (GTS), a local consultancy, to update the Environmental Impact Report (EIR) and related management plans. This includes comprehensive surveys covering surface and groundwater, biodiversity, waste, and archaeology, all critical for securing drilling approvals. The company has also sought tenders for a drilling program, pending environmental clearance, indicating a clear path toward advancing exploration activities.
Asset Sale and Financial Position
Post-quarter, XTC completed the sale of its non-core Southern Cross gold exploration tenements in Western Australia, a move that streamlines its focus on lithium assets. Financially, the company reported a net cash outflow from operations but maintains approximately A$1.1 million in available funding, combining cash and unused financing facilities. Management expresses confidence in raising additional capital to sustain operations and progress the Carachi Project.
Corporate and Market Status
The company updated its registered address in West Perth and continues to work toward reinstatement to trading on the ASX, which remains suspended. This status underscores the importance of forthcoming milestones, including definitive partnership agreements and environmental approvals, to restore market confidence.
Situated near established lithium operations such as POSCO’s development at Hombre Muerto and Lake Resources’ Kachi project, Carachi offers strategic proximity to proven lithium brine resources, enhancing its potential value proposition.
Bottom Line?
XTC’s next steps hinge on finalising partnerships and environmental approvals, critical for unlocking value and resuming market activity.
Questions in the middle?
- When will XTC finalise a definitive agreement with American Battery Materials?
- What is the timeline for environmental approvals and commencement of drilling?
- How soon can XTC secure additional capital to extend its operational runway?