iTech Minerals (ASX:ITM) has received the Central Land Council approval to start its farm-in and lithium joint venture with SQM Australia for its Reynolds Range lithium project in the Northern Territory, according to a Wednesday filing with the Australian bourse.

Under the deal, the company received AU$2 million from SQM Australia for a 30% stake in the lithium mineral rights, the filing said.

However, SQM can earn up to a 70% stake in the lithium rights by spending AU$7 million on exploration within the next four and a half years, and by paying an additional AU$3 million to the company and defining a mineral resource estimate of 50 million tonnes at 1% lithium oxide or equivalent, the filing added.

Shares of the company rose 6% at market close.