Eastern Resources Limited (ASX:EFE) has confirmed that a new JV company, EFE Yongxing Pty Ltd, has been incorporated by Eastern Resources and Yongxing Special Materials Australia Pty Ltd – a subsidiary of Yongxing Special Materials technology Co. Ltd
Eastern Resources has 60% interest in the JV company by contributing $100,000 and YSMA has 40% interest by contributing $900,000. The JV company is the corporate entity through which the company and YSMA will seek lepidolite lithium projects in Australia and carry out any works related to pre-acquisition of the Projects, consistent with the parties’ objectives as set out in the Strategic Partnership with Yongxing.
Utilising the JV Company, Eastern Resources can increase focus not only on lepidolite projects, but also on lithium projects with both lepidolite and spodumene potential.
Eastern Resources has strengthened its relationship with Yongxing which focusses on lepidolite lithium mineralisation and Yahua – which focusses on spodumene lithium mineralisation.
The company said these two strategic relationships provide Eastern Resources with excellent coverage over the primary lithium sources.
Eastern Resources will explore for lepidolite as well as spodumene in the existing Trigg Hill Lithium Tantalum Project and Taylor Lookout Lithium Tantalum Project in Western Australia. Assay results from initial exploration programmes at the Trigg Hill Project are expected to be received and released before the end of the month and will focus ongoing exploration programmes at this project area.
The JV company will actively seek lepidolite opportunities from exploration stage through to projects with established resources, and also will investigate any potential opportunities regarding producing lepidolite concentrates/DSO by co-operating with operating lithium mines and lithium projects in advanced stage.
About Yongxing Special Materials Technology
Yongxing is an A-share listed company on the Shenzhen-stock exchange in China, with a market capitalisation of approx. RMB 54 billion (approximately A$11.2 billion), principally engaged in the manufacture and sales of special steel and lithium salt products.
It is one of a few lithium carbonate producers in China with a commercial refinery process utilising lepidolite concentrates as feed to produce battery grade lithium carbonate.
The company’s existing operations have 10,000tpa refinery for lithium carbonate, and it is undertaking an expansion for a further 20,000tpa of lithium carbonate by the middle of 2022. In January 2022, Yongxing and CATL formed a lithium carbonate joint venture with annual capacity of 50,000 tons of lithium carbonate where Yongxing and CATL will hold a 30 percent and 70 percent stake in the joint venture respectively.
Lepidolite is the name of a rare lithium-rich mica mineral that is usually pink, red, or purple in color. It is the most common lithium-bearing mineral and serves as a minor ore of lithium metal, with rubidium and cesium sometimes being byproducts. When impregnated with quartz, lepidolite is used as a minor gemstone. Flakes of lepidolite are sometimes responsible for the colour of pink and red aventurine.
For further information please visit: http://easternresources.com.au/