The MoU "intends to create a partnership on the project" and involves a number of other aspects beyond development funding including "environmentally friendly" processing techniques, potential offtake and "further strategic collaboration for new developments in Chile" featuring a "direct lithium extraction" technology.

No timeframe on formalising any agreements was flagged.

Details on capex and operating metrics are due later this year.

Up until December last year, Maricunga was slated as a US$563 million development producing 20,000t per annum of lithium carbonate for about 20 years.

A previous MoU with Codelco was iced with the change in plans.

Maricunga is held 51% by Lithium Power, with the other partners being the Borda Group (31%) and Bearing Lithium (18%).

Lithium Power started the current quarter with A$9 million cash.

Shares in Lithium Power were down 7% to 27c in midday trade, capitalising the company at $81 million.

The stock has doubled in value over the past 12 months.