Mandrake Resources (ASX:MAN) has signed a non-binding letter of intent with US lithium refinery developer Stardust Power (NASDAQ:SDST) to supply lithium chloride from the Utah Lithium Project.
As part of the offtake deal, Mandrake will supply 7,500 tonnes of lithium chloride per year to Stardust’s Muskogee lithium processing facility in Oklahoma. The facility has an anticipated production capacity of up to 50,000 tonnes of battery-grade lithium carbonate per year.
The initial term of the delivery is 12 years from the date on which first commercial shipment is received by Stardust Power. Stardust has the right to extend the agreement for an additional six years.
Mandrake Managing Director James Allchurch says the deal highlights the scale and quality of the Utah Lithium Project, while also reflecting the accelerating drive towards US energy independence.
Stardust Power co-founder Pablo Cortegoso says there is a strong alignment between the Utah Project and the company’s vision for a fully integrated American lithium supply chain.
“The project is a well-positioned US brine asset with a clear path to development, offering scale, access to existing infrastructure, and a large brine resource that could be advanced efficiently with limited capital intensity,” Cortegoso says.
Stardust is positioned to take advantage of strong state support to strengthen Oklahoma’s industrial base with more than US$275 million ($420.3 million) in funding potentially available through cash incentives, rebates, and tax credits.
The Utah Project, covering 379km2, is located in the Paradox Basin of the US.
Mandrake Resources is a mineral explorer focused on advancing lithium projects in the lithium four corners Paradox Basin in south-eastern Utah.
Write to Aaliyah Rogan at Mining.com.au
Images: Mandrake Resources
