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- Jadar Resources (JDR) partners with Yahua to acquire and develop lithium projects and supply spodumene concentrates globally
- The companies have signed a memorandum of understanding, under which a strategic partnership will be formed within six months
- Under this agreement, Jadar will sell 100 per cent of the lithium concentrate from the lithium projects it controls to Yahua
- JDR’s Executive Director Adrian Paul says the deal provides potential for development of the company’s current assets, as well as an avenue for further growth
- Shares have been trading 27.8 per cent higher at 6.9 cents each
Jadar Resources (JDR) has partnered with Yahua International Investment and Development to acquire lithium projects and supply spodumene concentrates globally.
Yahua is a wholly owned subsidiary of Sichuan Yahua Industrial Group, which is listed on the Shenzhen-stock exchange in China and is one of the country’s major lithium hydroxide and lithium carbonate producers.
The companies have signed a memorandum of understanding, under which a strategic partnership will be formed within six months.
A number of terms are to be negotiated for inclusion in the agreement, including Jadar selling 100 per cent of the lithium concentrate from its lithium projects to Yahua.
Additionally, should the partnership eventuate, Yahua will be offered an equity position of up to 80 million JDR shares 4.5 cents each. Jadar will need to ensure these funds are only used for exploration and development of its lithium projects.
The companies also plan to establish a joint venture for the acquisition and development of lithium projects.
Jadar Resources’ Executive Director Adrian Paul said progressing the MOU and its strategic partnership with Yahua is an exciting time.
“The MOU provides a potential mechanism for both the development of our current lithium assets as well as an avenue for further growth in the portfolio through acquisition.”
The MOU will terminate upon signing of the Strategic Partnership Agreement. If the agreement isn’t finalised before the expiry date, there is an option to extend negotiations for an additional month otherwise the deal will be terminated.
Today’s news follows the company’s announcement yesterday that it has changed its name to EV Resources with the Australian Securities and Investments Commission and will trade under the ticker code EVR.
Shares were trading 27.8 per cent higher at 6.9 cents at 10:26am AEDT.
