Liontown secures option to acquire full ownership of Centenario Lithium Project

Liontown Limited has entered into a farm-in agreement with NEXT Lithium Corp. that could grant the Australian miner 100% ownership of the Centenario lithium brine exploration project in Argentina.

The deal provides Liontown with a low-cost entry point into lithium brine assets, while also diversifying its geographic footprint and resource base beyond its existing Kathleen Valley hard-rock operation in Western Australia. For NEXT Lithium, the agreement offers a clear development pathway for the Centenario project.

The project is strategically situated near the Pozuelos-Pastos Grandes project and the Centenario-Ratones operations, both of which have targeted annual lithium carbonate production of up to 150,000 tonnes. Brine represents one of the two primary sources of lithium, and Argentina ranks among the world's top exporters of the metal.

The farm-in arrangement is structured in four phases, through which Liontown will progressively increase its interest in Vertex Holdings-NEXT Lithium's Australian subsidiary-reaching 100% by the end of the four-year period.

Upon completion of the initial transaction, Liontown will pay $5 million in cash and issue $10 million worth of shares to secure the farm-in right.

Liontown has committed to an initial $15 million work program over the first two years, which will include a drilling campaign targeting anomalies previously identified through transient electromagnetic surveys. With this funding, Liontown can earn an effective 49% interest in the project.

The company is under no obligation to proceed with phases 1, 2, or 3. However, should it choose to advance to phase 3, it will be required to complete the phase 4 acquisition, taking full ownership of Vertex Holdings.