Through Lithium Chile's subsidiary Argentum Lithium, the two parties have executed a memorandum of understanding, signed at the PDAC convention in Toronto, that provides Lithium Chile with a collaborative framework for exploration and development of over 4,680 additional hectares on the Salar de Arizaro.

"It is our continued belief that the Arizaro project has the potential to be a significant commercial property and this JV is another opportunity to prove and expand our exploration and development efforts on this very significant project," Lithium Chile's president and CEO Steve Cochrane said.

REMSA is to carry out preliminary tasks such as scientific and technological research to ensure that the parties have accurate technical information relating to the potential resource on the additional lands.

"These tasks will include additional geophysical surveys designed to determine geological setting and characteristics, chemical composition via surface sampling, preliminary drilling and subsequently an in-depth analysis of those results to determine levels of recovery, depth, and accessibility; - all targeted to establish the concentrations of, and extent of, lithium, potassium and other associated minerals that could exist within the area of interest," Lithium Chile said.

REMSA CEO Alberto Castillo said the MoU shows the positive investment conditions available in Salta.

"Salta has established consistent and transparent policies toward responsible mineral exploration and development, while offering clear projection for the environment and our people," he said.

An initial resource from its maiden well drill on the Arizaro salar stands at 1.42 million tonnes of lithium hydroxide, Lithium Chile noted.

Lithium Chile's share price was C$0.60 (US$46) on June 20. The stock has seen a 52-week high/low of C$1.21/C$0.25. The company has a market capitalization of C$97.4 million.