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Askari Metals Limited, an Australian based exploration company with a portfolio of battery metals (Li + Cu) and precious metals (Au + Ag) projects across Western Australia, Northern Territory and New South Wales, has announced that the company has signed a non-binding lithium strategic partnership agreement with Zhejiang Kanglongda Special Protection Technology Co., Ltd.
The lithium partnership agreement relates to the company’s Australian-based lithium assets including the Barrow Creek Lithium project located in the Northern Territory, as well as the portfolio of Eastern Pilbara lithium assets, namely the Yarrie Lithium project, the Talga East Lithium project and the Myrnas Hill Lithium project.
Zhejiang Kanglongda is principally engaged in research and development, design, manufacture and sales of protective gloves, and is listed on the Shanghai Stock Exchange with a market capitalisation of approximately US$988 million. In July 2022, Zhejiang Kanglongda completed the acquisition of a further 17.7% interest in a local Chinese lithium chemicals producer (Jiangxi Tiancheng Lithium Industry) (Tiancheng Lithium) for US$30 million, bringing its total equity ownership to 51%. Tiancheng Lithium extracts lithium sulfate solution.
The lithium partnership will assist the company with the rapid development of its Australian lithium assets. Pursuant to the Lithium Partnership, Zhejiang Kanglongda will be provided with a preferred offtake position in relation to commercial production from the company’s Australian lithium projects. In addition, Zhejiang Kanglongda will assist the company with lithium chemical downstream processing techniques and opportunities, as well as provide access to capital for future development.
Commenting on Lithium Partnership Agreement, Executive Director, Mr Gino D’Anna, stated:
“The lithium partnership agreement with Zhejiang Kanglongda signifies a landmark agreement for the company and validates the potential of our lithium projects within the Northern Territory and the Eastern Pilbara region. Our aggressive exploration mandate has enabled us to delineate areas of high-priority and we are rapidly planning the re-commencement of field activities at our lithium exploration projects, including the recently acquired Myrnas Hill Lithium project. Pursuant to the agreement, we will work closely with Zhejiang Kanglongda in the development of lithium downstream products and importantly Zhejiang Kanglongda will provide us with access to key markets within China and provide Askari with access to capital for future development.
Zhejiang Kanglongda will also be provided with a preferred offtake position at market prices. We believe that Zhejiang Kanglongda is a tier-1 partner for our company and we are very pleased to have the opportunity to work alongside them in the development of our Australian lithium assets.
In addition, the company is investigating commercialisation strategies for its copper and gold projects within Australia including a spin-out, which will facilitate the company’s continued concentration on the battery metals sector, and specifically lithium. We are excited about the future and look forward to keeping our shareholders informed as we continue to progress.”
Read the article online at: https://www.globalminingreview.com/mining/21102022/askari-signs-agreement-with-zhejiang-kanglongda-to-develop-australian-lithium-assets/
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