Scorpion Minerals (ASX:SCN) has entered a memorandum of understanding (MoU) with Chinese battery minerals manufacturer GreatPower Nickel and Cobalt Minerals to strengthen lithium opportunities at the Poona area of the Pharos Project in Western Australia.
GreatPower will provide Scorpion with a total of US$10 million ($15.31 million), including a US$2 million upfront payment to advance its lithium project to host a JORC-compliant resource of 10 million tonnes @ 1% lithium oxide.
The remaining US$8 million will be deployed upon confirmation of this resource. GreatPower will then organise miner development funding on the return of mining approvals.
The MoU brings GreatPower to a 90% stake in offtake rights. GreatPower has shown interest in furthering lithium mine development and operations through the construction of a solar power plant.
Scorpion CEO Michael Fotios describes GreatPower to be an “extremely well credentialed and experienced energy storage manufacturer in China”, providing a great opportunity for the company to accelerate lithium operations.
“The fact that we have attracted the interest of such a significant Chinese player, speaks volumes to the underlying quality of our lithium assets in Western Australia, and the capabilities of our management team to advance these assets through to production,” Fotios says.
“Importantly, the upfront funding support provided by GreatPower will give Scorpion the bandwidth to aggressively advance its current lithium assets, whilst also pursuing new project opportunities; several of which are already on the company’s radar.”
GreatPower Chairman DongQiang (Aaron) Cao says the MoU is a strategic move for both companies, as both focus on collaboration and development to develop lithium resources.
“Aiming at achieving sustainable energy and ESG goals, in accordance with GreatPower’s global strategy on digital energy integration,” Cao says.
“This mutual beneficial relationship will realise the synergy of cross-border industry collaboration with Scorpion Minerals.”
Cao is scheduled to visit the site in early December.
Scorpion Minerals is an Australian explorer focused on developing its portfolio of assets, including the Pharos and Jungar Flats Projects, located in the Murchison Province of Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Scorpion Minerals
