Eastern Iron Limited (ASX:EFE) has inked a non-binding MOU with Chinese group Ya Hua International Investment and Development to form a joint venture that would acquire and develop a series of lithium assets including the Trigg Hill Lithium Tantalum Project.
The deal would see Ya Hua, a subsidiary of Sichuan Yahua Industrial Group, granted first right of refusal for offtake rights for all projects under the partnership.
The MOU allows for three months for the parties to enter into a strategic partnership agreement, covering the supply of spodumene concentrates plus project acquisition in Australia and other countries, except for China.
Yahua Group delivers volume potential
The Yahua Group is one of China’s major lithium hydroxide and lithium carbonate producers, with current output totalling 43,000 tonnes per annum, and plans to expand to a further 50,000 tonnes per annum of lithium hydroxide + 1,000 tonnes per annum of lithium metal by 2025.
The group, which is a major shareholder of Core Lithium (ASX:CXO), and an offtake partner of Orocobre Limited (ASX:ORE), has a strong existing customer base including Tesla, BYD Auto, Zhenhua E-Chem and Sinopec.
Trigg Hill Lithium Acquisition
Eastern Iron had earlier announced that it had acquired an option to purchase a 100% interest in the Trigg Hill Project from Amery Holdings.
The project is located in the East Pilbara, one of the world’s major hard-rock lithium provinces, and sits within 80km of several major lithium assets including Pilgangoora (Pilbara Minerals; ASX:PLS), Marble Bar (Global Lithium Resources; ASX:GL1), and the Tier-1 Wodgina (Mineral Resources; ASX:MIN).
The project is home to known curlew pegmatites which provide potential for lithium, tantalum, rare earth oxides and tin.
