IRIS Metals (ASX:IR1) has entered into an exclusivity agreement with Stardust Power (NASDAQ:SDST) to further explore commercial and strategic opportunities, including an offtake agreement.
Stardust is a US-based developer of battery-grade lithium products designed to supply the EV industry. The company is currently developing a centrally located lithium refinery based in Oklahoma.
The agreement, effective from 9 November 2024, grants Stardust a 90-day exclusivity period with the aim to progress opportunities between the companies, including financing or other investment in IRIS or its affiliates.
IRIS says the exclusivity period is extendable for an additional 30 days by Stardust.
Chairman Peter Marks says Stardust is an ideal partner for the company.
“We believe there is a highly complementary fit in our vision, cultures, and operational expertise with both committed to producing battery-grade lithium in a sustainable manner,” Marks says.
“Stardust Power is aligned with our objective to develop our South Dakota lithium project into a world-class asset producing and supplying high-quality lithium products to the North American battery materials industry.”
This news comes after Stardust joined IRIS’ shareholder register as an investor in an $8 million placement. Stardust subscribed for $2.5 million of the total placement, with an option to subscribe for a further $2.5 million on completion of the exclusivity period, subject to shareholder and board approvals.
Under the placement, 32 million shares were issued at $0.25 per share, raising $8 million.
CPS Capital acted as lead manager to the placement.
The funds raised will be allocated to ongoing exploration activities, including further exploration and development work on patented properties, including Tin Mountain, initial definition of a maiden lithium resource in 2025, and progressing the bureau of land management targets and associated permitting activities.
Marks adds this funding positions the company to continue activities at its properties across South Dakota.
“As previously discussed, we anticipate announcing a maiden mineral resource estimate at Beecher early in 2025, followed by a resource at Tin Mountain,” Marks says.
Write to Aaliyah Rogan at Mining.com.au
Images: Stardust Power
