PERTH (miningweekly.com) – Perth-based Jadar Resources has struck a memorandum of understanding (MoU) with China’s Yahua International Investment and Development Co to potentially jointly acquire and develop lithium projects.
Under the terms of the MoU, the two companies hope to reach a partnership agreement within the next six months.
The strategic partnership agreement would see Yahua take up 80-million shares in Jadar, at a price of 4.5c each, for a 10% equity stake in the company, with Jadar having to ensure that the capital investment would only be used for exploration and development of lithium assets.
The two companies would also establish a joint venture for the acquisition and development of lithium projects, with Jadar to sell all of the lithium concentrate produced from these assets to Yahua. Jadar would also be required to ensure all government approvals and licences necessary for these assets.
“I am extremely excited to progress this MoU and strategic partnership with Yahua. The electric vehicle and lithium markets have seen substantial growth over the past year as global adoption of EV technologies starts to materialise. The MoU provides a potential mechanism for both the development of our current lithium assets as well as an avenue for further growth in the portfolio through acquisition,” said Jadar executive director Adrian Paul.
The MoU will terminate on the signing of the strategic partnership agreement.