Millennial Lithium Corp (CVE:ML) (OTCQB:MLNLF) announced Monday another key milestone in the evolution of its flagship Pastos Grandes lithium project in Argentina with the granting of a federal fiscal stability certificate, which outlines the tax regime for the property over the next 30 years.
The main feature of the document is the reduction of the corporate income tax rate from 30% to 25% with effect from the beginning of next year, noted the Vancouver-headquartered firm.
"The granting of the Federal Fiscal Stability Certificate by the Federal Government of Argentina assures the tax and benefit terms under which Proyecto Pastos Grandes S.A., the Millennial Argentine subsidiary, can operate a lithium carbonate production operation," said Farhad Abasov, president and CEO at Millennial.
He added that the project continued to advance with pilot plant construction underway and pilot ponds being active.
The receipt of the tax certificate confirms the group's confidence that mining projects in Salta province have the support of "all levels of government," said Abasov.
Last month, the group said it was expecting to start treating brine at the pilot plant this December to produce battery-grade lithium carbonate.
It is aimed that the pilot operation will produce around 3 tonnes per month of battery-grade lithium carbonate and includes a final purification stage to ensure consistent production.
Liming plant operational
The liming plant is now fully operational and treating up to 100 square metres of brine per day, which then goes to a large holding pond for concentration of the lithium, the firm added.
Fiscal stability certificates have been issued by the Municipality of Salta, as well as the Municipality of San Antonio de Los Cobres, the municipality within which the Pastos Grandes project is located. The Provincial certificate from Salta Province is expected this month.
A feasibility study for Pastos Grandes pegged production of 24,000 tonnes per year (TPY) of battery-grade lithium carbonate - over 99.5% lithium carbonate equivalent (LCE) - and put the total initial capital expenditure required at US$448.2 million, including direct and indirect costs.
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