Liontown Resources (ASX:LTR) executed a binding farm-in agreement with Next Lithium to earn up to a 100% interest in the Centenario lithium brine exploration project in Argentina, with initial consideration comprising about AU$7 million cash and about AU$14 million in Liontown shares payable on initial completion, according to a Tuesday Australian bourse filing.

The company said the farm-in structure allows Liontown to progressively increase its interest to 100% by funding about AU$56 million of project expenditure over four years, plus milestone payments of up to about AU$195 million in cash, Liontown shares or a combination at Next Lithium's election.

An initial $15 million work program is planned over the first 12 to 24 months, including a drilling campaign targeting anomalies identified by a transient electromagnetic (TEM) survey already completed across the project, with Liontown able to earn an effective 49% interest in the project upon funding $15 million in project expenditure within 24 months, the filing added.