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[ferro-alloys.com]Chile's SQM announced Monday the sale of its 50% stake in Minera Exar to China's Ganfeng Lithium for $87.5 million.

Exar controls the development of the 50,000 mt/year Cauchari-Olaroz lithium carbonate brine project in Argentina's Jujuy province.

"The contract is subject to certain conditions and should close during the fourth quarter," SQM said in a statement.

The Chilean miner should also receive an additional $50 million deferred payment if certain goals are achieved once the project is operational.

SQM will now focus on large scale projects, said company CEO Patricio de Solminihac. "We will focus our efforts on our expansions in Chile, where we expect to almost quadruple our capacity in the coming years," he said.

"We will also focus our efforts in Australia, where we see significant production potential given the size of the existing resources," he added.

In the wake of the Minera Exar deal, Canadian junior Lithium Americas said has increased its interest in the Cauchari-Olaroz project to 62.5%, with Ganfeng holding the remaining 37.5%.

"Construction remains on track for first production in 2020," when the first 25,000 mt/year stage is slated to start commercial operations," Lithium Americas said in a statement.

The Vancouver-based miner said it will also receive a $100 million subordinated loan facility from Ganfeng to help fund the first stage of the Cauchari-Olaroz project, adding the two companies had also signed a "strategic collaboration agreement to explore future partnership opportunities."

• [Editor:王可]