- Eastern Iron (EFE) signs a memorandum of understanding (MoU) with Chinese lithium producer, Ya Hua International Investment and Development
- The companies aim to eventually form a joint venture to supply spodumene concentrate and acquire and develop lithium projects outside of China
- Eastern Iron already recently announced its plans to acquire Amery’s Trigg Hill Project in WA’s Pilbara region
- Once the acquisition is complete and an exploration target has been defined, Yahua and EFE will enter a joint venture to explore and develop the project
- Company shares are up 30.8 per cent to trade at 1.7 cents
Eastern Iron (EFE) has signed a non-binding memorandum of understanding (MoU) with Ya Hua International Investment and Development.
Ya Hua is a wholly-owned subsidiary of Sichuan Yahua Industrial Group Co which is one of China’s major lithium hydroxide and lithium carbonate producers.
Its existing operations include a 43,000 tonnes per annum (tpa) refinery for lithium carbonate, lithium hydroxide and other lithium products. However, this facility is planned to be expanded for a further 50,000tpa of lithium hydroxide and 1000tpa of lithium metal by 2025.
The aim of the MoU is to enter a strategic partnership agreement within the next three months to jointly supply spodumene concentrate and for the potential acquisition and development of lithium projects in Australia and in other countries outside of China.
The companies may also form a joint venture prior to Eastern Iron acquiring a lithium project or when it completes an agreed amount of work on a lithium project.
As it turns out, Eastern Iron already has an acquisition in the pipeline. At the start of August, the materials stock signed a deal with Amery to fully acquire the Trigg Hill Lithium-Tantalum Project which is known to contain hundreds of pegmatite outcrops.
The project lies within Western Australia’s Pilbara region and is located 75 kilometres southeast of Pilbara Minerals’ (PLS) Pilgangoora Lithium-Tantalum mine.
Eastern Iron will pay Amery $250,000 in cash and either $500,000 in cash or shares and must conduct at least 800 metres of drilling within 15 months.
Once the acquisition of the Trigg Hill Project is complete and an initial exploration target has been defined, Yahua and EFE will enter a joint venture to explore and develop the project.
Yahua will be granted a first right of refusal for product offtake from any of the JV projects including Trigg Hill.
Company shares were up 30.8 per cent to trade at 1.7 cents at 11:43 am AEST.