Patagonia Lithium has entered a strategic partnership with Ameerex Corporation, aiming to bolster investment and development in its Formentera lithium project and Brazilian rare earth ventures.
- Non-binding partnership agreement signed with Ameerex Corporation
- Ameerex to co-invest up to 50% in mining projects including lithium and rare earths
- Support includes private placements and investment in drilling and pilot plant programs
- Recent $2.68 million capital raise complements new strategic funding source
- Formentera project boasts a 551,400 tonnes lithium carbonate equivalent mineral resource
Strategic Partnership Formation
Patagonia Lithium Ltd (ASX, PL3) has announced a non-binding strategic partnership agreement with Ameerex Corporation, a US-listed company with a management team based in Doha, Qatar. This alliance is designed to support Patagonia’s flagship Formentera lithium project in Argentina, as well as its Brazilian niobium and rare earth element exploration ventures.
Ameerex’s business model focuses on co-investing up to 50% of project value in mining and related ventures, with a current emphasis on lithium explorers. Their involvement is expected to provide Patagonia Lithium with a valuable alternative source of capital, complementing the recent $2.68 million raised by the company.
Backing Drilling and Development
The partnership will see Ameerex supporting Patagonia Lithium’s ongoing drilling and pilot plant programs through private placements and investments at both the company and project levels. Patagonia is currently drilling its fifth well, JAM 25-05, on the Formentera concession, which has already demonstrated promising lithium assay results and resource potential.
Phillip Thomas, Executive Chairman of Patagonia Lithium, highlighted the strategic value of this partnership, "It will allow us to continue making progress to reach our milestones of a substantial indicated mineral resource and a scoping study." This suggests that the company is positioning itself to advance from exploration towards more definitive project development stages.
Project Portfolio and Resource Highlights
Patagonia Lithium’s portfolio includes two major lithium brine projects in Argentina’s lithium triangle, Formentera/Cilon and Tomas III, as well as exploration concessions in Brazil targeting ionic rare earth element clays, niobium, antimony, and lithium in pegmatites. Notably, the Formentera project recently reported an upgraded Mineral Resource Estimate of 551,400 tonnes lithium carbonate equivalent (LCE), with a significant portion classified as inferred resources.
The company’s Brazilian concessions are strategically located near the largest niobium producer in Goiás state, underscoring the potential for valuable rare earth and critical mineral discoveries. Ameerex’s experience in oil and gas investments, combined with its pivot towards clean energy transition minerals, aligns well with Patagonia’s ambitions in the lithium and rare earth sectors.
Looking Ahead
While the partnership agreement is non-binding and specific investment terms remain to be finalised, the collaboration signals a vote of confidence from a well-capitalised international investor. For Patagonia Lithium, this could translate into accelerated exploration, resource definition, and eventual project development, which are critical milestones for unlocking shareholder value.
Investors will be watching closely for formal investment commitments from Ameerex and subsequent drilling results that could further validate the company’s resource base and project economics.
Bottom Line?
This strategic partnership could be the catalyst Patagonia Lithium needs to transition from promising explorer to emerging lithium producer.
Questions in the middle?
- What are the specific terms and timing of Ameerex’s planned investments?
- How will this partnership impact Patagonia Lithium’s timeline for a scoping study and resource upgrade?
- Could Ameerex’s involvement lead to broader international interest or off-take agreements?