iTech’s Lithium Future Hinges on SQM’s Exploration Milestones at Reynolds Range

A New Chapter for Reynolds Range

iTech Minerals Ltd has taken a significant step forward in its lithium ambitions by formalising a farm-in and joint venture agreement with SQM Australia Pty Ltd at the Reynolds Range Lithium Project in the Northern Territory. This milestone follows the Central Land Council’s consent, which cleared the final regulatory hurdle and triggered a $2 million payment to iTech for an initial 30% interest in the lithium mineral rights across four exploration licenses.

The Reynolds Range project, spanning nearly 800 square kilometres in the Aileron Province, is strategically positioned north-northwest of Alice Springs. The region’s lithium potential has attracted SQM, a global lithium producer, which will now take the lead in funding and managing exploration activities.

Structure and Strategic Implications

Under the terms of the agreement, SQM’s initial 30% stake can grow to 51% by investing $7 million in exploration over the next four and a half years, with a minimum commitment of $2 million in the first 18 months. Further, SQM can increase its interest to 70% by either defining a JORC-compliant mineral resource of at least 50 million tonnes at 1.0% lithium oxide or equivalent, or by spending an additional $15 million on exploration, alongside a $3 million payment to iTech.

During this earn-in period, SQM will operate the project, allowing iTech to concentrate its efforts on exploring the antimony and gold potential of the tenement package, which it retains 100% ownership of. This division of focus could unlock value across multiple commodities within the same landholding.

Financial and Operational Outlook

The immediate financial impact for iTech is a strengthened cash position, now boosted to $5 million following the $2 million payment. This capital injection provides a buffer for ongoing exploration and corporate activities. Additionally, a one-off success fee is structured to reward iTech upon completion of a definitive feasibility study and a mining decision, calculated based on lithium oxide content, aligning incentives for both parties.

With SQM’s operational expertise and financial muscle driving lithium exploration, the partnership could accelerate the delineation of a significant lithium resource in a region that has seen growing interest. The collaboration also reflects a broader trend of junior explorers partnering with established producers to mitigate risk and leverage technical capabilities.

Looking Ahead

As SQM embarks on its exploration campaign, the market will be watching closely for early results and progress towards the earn-in milestones. For iTech, the joint venture represents a strategic pivot that balances immediate financial gains with long-term exposure to lithium’s rising demand, while maintaining control over other valuable minerals on its tenements.