- FYI Resources (FYI) and Alcoa Australia extend the exclusive agreement period for a possible high purity alumina (HPA) joint venture
- Due diligence has been completed and FYI says substantial progress has been made with negotiations on the key terms and structure of the possible JV
- However the companies have agreed to extend the agreement period by one month to complete assessments of the content and scope of the project
- FYI says the extension will also facilitate completion of negotiations and drafting of a binding term sheet
- Shares have been trading 5.26 per cent higher at 60 cents at 2:44 pm AEST
FYI Resources (FYI) and Alcoa Australia have extended the exclusive agreement period for a possible high purity alumina (HPA) joint venture.
The companies began discussion for the potential partnership in May, with FYI seeing potential to create a material global HPA business in the high tech energy materials sector.
During the initial three-month exclusivity agreement, due diligence has been completed and FYI said substantial progress had been made with negotiations on the key terms and structure of the possible JV.
Now the companies have decided to extend the agreement period for an additional month as assessments continue on the broader development and future growth options for the project.
Various de-risking options for the project in line with Alcoa's operating experience are also being assessed.
The companies believe the short extension is essential to complete the remaining work as well as to facilitate the completion of negotiations and drafting of a binding term sheet.
While an extension is not ideal, FYI Managing Director Roland Hill said the company's commitment to successfully negotiating a binding agreement was unwavering.
FYI clarified that the intent of the parties to accelerate the project’s development as outlined in the original memorandum of understanding remained unchanged notwithstanding this extension.
Shares were trading 5.26 per cent higher at 60 cents at 2:44 pm AEST.