Under terms of the MoU, the parties will sign an offtake deal for all of Atacama's production and explore further synergies between the companies.
"Partnering with U1G will help Wealth accelerate the development of lithium projects by using modern technology and moving away from outdated solar evaporation to a more efficient and environmentally friendly sorption technology," said Wealth CEO Tim McCutcheon.
The Atacama lithium project is one of the world's largest and highest grade, spanning a 46,200-hectare licence area.
The transaction also provides for increased co-operation between the parties to develop lithium projects, with the added benefit of using U1G's ecologically friendly sorption lithium extraction technology.
U1G's extraction technology holds several advantages over traditional evaporation ponds in that it greatly reduces the physical footprint of an operation while enhancing the quality of lithium extraction and recovery levels, leaving the operator able to pump the waste brine solution back into the salar (salt flat) to help ensure long-term operational and environmental sustainability.
Wealth shares (TSXV:WML) have fallen about 45% in the past 12 months and currently trade at C36c, which capitalises the company at $50 million.