Canadian exploration company Silver Valley Metals is in talks with Mexican state-owned lithium company LitioMx to form an exploration and production partnership.

Talks have been underway for months and “discuss the possibility of forming a partnership to explore and ultimately produce lithium in the Mexican lithium-potassium project located in Zacatecas and San Luis Potosi,” according to a statement.

Silver Valley, formerly Organimax Nutrient, maintains the La Salada, Santa Clara and Caliguey saltworks projects in the region, covering 4,060 ha.

“Trading focuses exclusively on the lithium component of the multi-commodity deposit(s). This represents an inferred resource of 243,000 tonnes of lithium carbonate equivalent defined so far at surface at an average depth of only 5m,” the miner said.

MexiCan is the nation’s second most advanced lithium project and remains open to expansion through exploration, according to Silver Valley.

In March 2022, the company informed analysis of partnership alternatives for its lithium and potassium sulphate deposits in Zacatecas. Talks have advanced under non-disclosure agreements with various groups to negotiate direct investments, joint ventures, spin-outs or full acquisitions.

CEO Brandon Rook said, “The ongoing relationship between LitioMx and Silver Valley Metals shares a vision for building the project in a sustainable manner with an emphasis on clean mining technology, community, as well as strong governance and transparency that will be key to our future success.

Pablo Taddei, CEO of LitioMx, mentioned to Bloomberg recently that “negotiations are underway with companies that already have concessions [de lítio] in the country, with the aim of forming a common front”.

Silver Valley highlighted Taddei’s remarks, stating, “LitioMx will manage and retain shared control of the activities necessary for the production, processing and distribution of lithium-derived products, for which it may partner with other companies and public and private institutions. ”

LitioMx was created by decree in August 2022 as part of the nationalization of Mexican lithium resources.