Nimy Resources (ASX:NIM) has signed a non-binding collaboration agreement with engineering, research, and services provider M2i Global (OTCQB:MTWO), aimed at assuring a supply of gallium in support of the US Department of Defense.
The US Department of Defense, through its Manufacturing Capability Expansion and Investment Prioritization Office, is eager to secure a reliable, sustainable supply of gallium materials that can be used variously in support of the US Government. These uses include producing semi-conductors, radar, and aerospace technologies.
Under the non-binding deal, M2i will aim to secure a gallium procurement contract with the Department of Defense, while Nimy will deliver gallium as it uncovers and develops its projects in Australia.
Both companies will work cooperatively to leverage each other’s specialist capabilities. A fund management company will be appointed as an advisor to M2i and Nimy and a definitive agreement will be established to contemplate considerations payable each way.
Gallium is widely used in electronics, semiconductors, transistors, and small electronic divides. Gallium is also used in LEDs.
Gallium occurs in very small concentrations in ores of other metals, and most gallium is produced as a by-product of processing bauxite while the remainder is produced from zinc-processing residues, as reported by the US Geological Survey.
The US Geological Survey reports that gallium contained in world resources of bauxite is estimated to exceed 1 million tonnes, and a considerable quantity could be contained in world zinc resources.
According to the US Geological Survey, in 2023, imports of gallium metal were valued at US$3 million ($4.89 million) which is a 40% decrease in value from 2022.
M2i Chief Executive Alberto Rosende says this agreement will assist the work the company is doing in support of US National Defense and Economic Security.
“DOD wants to build a resilient industrial base to meet current and future national defense requirements,” Rosende says.
M2i Executive Chairman Doug Cole adds that the core mission is fortifying the nation’s critical material supply by providing secure and reliable access to key resources for the US.
“We are excited to work closely with Nimy to advance their vision of setting the benchmark for the integrated supply of superior quality, natural gallium material to the growing technology industry,” Cole notes.
M2i Global focuses on bringing together people, technology, and solutions from across government, business, not-for-profit, and academia to provide access and availability to critical minerals and metals for defense and economic security.
Nimy Resources is an emerging explorer focused on discovering and developing critical metals in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Nimy Resources
