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Allkem to Acquire Maria Victoria Tenement in Exchange for Borax

Allkem Limited has signed a binding and conditional Heads of Agreement (HOA) to handover Borax Argentina S.A (Borax) to Minera Santa Rita S.R.L (MSR) and, in return, to obtain the María Victoria lithium tenement from MSR.

Olaroz and Cauchari showing Maria Victoria tenement. Image Credit: Allkem Limited


  • Allkem will gain 100% of the strategic lithium tenement of María Victoria situated north of the Olaroz Lithium Facility (María Victoria Tenement) and all shares in the Borax holding companies and US$14 million cash for rehabilitation liabilities and employees in exchange for transfer to MSR
  • In exchange for borate extraction rights (usufructs) in favor of MSR, finishing of due diligence by the Company on the Maria Victoria Tenement and delivery of needed internal and third-party sanctions, conditions precedent to finishing of the Proposed Transaction comprises the transfer of particular lithium tenements and royalties from Borax to Allkem

Transaction Details

The Company will transfer all the issued shares to MSR in the two Borax holding companies and US$14 million cash under the Proposed Transaction. In exchange, MSR will transfer 100% possession of the Maria Victoria Tenement to Allkem (or its nominee), as explained below in more detail. All workers of Borax will continue as employees of MSR.

Conditions Precedent to Completion Include:

  • The transferal of lithium tenements and related lithium royalties held in the Olaroz, Cauchari, and Hombre Muerto salars (Allkem Property Transfers) by Borax to Allkem (or its nominee)
  • Allkem granting Borax particular borate usufructs across the properties the Allkem Property Transfers subject (on customary industry terms), while the Company retaining a right to rebuy such usufruct rights in the coming days
  • Finalization of agreeable due diligence by Allkem on the Maria Victoria tenement, finalization and definitive agreements approval as a response to the terms of the HOA, and gaining all needed third party, internal, and regulatory approvals

The Company will be subject to receipt of the required third party and regulatory sanctions and also hold a part of the gas capacity that Borax is entitled to from the Fenix and La Puna gas pipelines to be accessible for its Sal de Vida project.

According to the satisfaction of the conditions presented, the Proposed Transaction’s completion is anticipated in Q4 CY2022.

The acquisition of the Maria Victoria tenement complements Allkem’s existing extensive lithium brine holdings in the region and will allow more efficient development of the Olaroz salar. The exchange of Borax which is a non-core asset allows Allkem to remain focussed on its key aim of delivering growth plans of increasing lithium production threefold by 2026 and maintaining 10% of global market share in the longer term.

Martin Perez de Solay, Managing Director and CEO, Allkem Limited

María Victoria Tenement

Covering around 1,800 ha, the Maria Victoria Tenement is situated in the northern part of the Salar de Olaroz, which is about 10 km from Allkem’s Olaroz Lithium Facility in the Jujuy Province.


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