Kidman Resources (ASX:KDR) has formed a joint venture with one of the world’s leading lithium producers, SQM, (Sociedad Quimica y Minera de Chile) to develop the Mt Holland Lithium project near Southern Cross in Western Australia.
The Australian lithium producer’s 50/50 JV also involves developing a downstream lithium refinery operation.
As part of the JV, Kidman is set to receive US$110 million for 50 per cent of the project.
Kidman says the JV with the Chilean company will come into effect once definitive documents have been executed and after the funds have been received in full.
The company says Mt Holland’s Earl Grey lithium deposit, which has a mineral resource of 128 million tonnes, has attracted a lot of global interest.
However, the partnership with SQM is the most compelling for shareholders as SQM has a depth of technical and marketing expertise that will benefit its position.
Shares in Kidman Resources (ASX:KDR) are trading 5.63 per cent lower to $0.67.