News: CAI UPDATE 1-Calidus partner to sell 40% stake in Pilbara lithium project to SQM

(Adds details of agreement throughout, share moves in paragraph 7)

Oct 23 (Reuters) - Australian gold explorer Calidus Resources Ltd (CAI) said on Monday Chilean lithium miner SQM SQMA.SN will buy a 30% stake in a Pilbara lithium project from its joint venture partner Haoma Mining.

SQM will ultimately take its interest in Pirra Lithium Ltd to 40% by injecting A$3 million ($1.90 million) to fund exploration, Calidus said in a statement.

Calidus, which owned Pirra equally with Haoma, will ultimately retain 40% ownership in the project by injecting A$2 million to fund exploration.

A SQM unit will subscribe A$3 million Pirra shares for A$0.20 apiece, Calidus said.

"Calidus will maintain its position in Pirra at 40% due to the significant potential of the land package and will re-assess its options for this holding as exploration continues," the company said.

"In line with this approach, there is no plan to seek an IPO of Pirra in the immediate term."

Shares of the Australian gold explorer soared as much as 27% to A$0.165, marking their biggest intraday jump since February 2019.

($1 = 1.5828 Australian dollars)