- Eastern Iron (EFE) has executed an agreement with a Chinese lithium producer to develop its Trigg Hill Project and to acquire other lithium assets
- EFE signed a strategic partnership earlier this year with Ya Hua International Investment and Development Co, a subsidiary of Sichuan Yahua Industrial Group Co
- Yahua has significant experience developing lithium salt assets in China and the business will have first dibs to any of EFE’s offtake spodumene concentrate
- The two parties will also form joint ventures to buy and explore new lithium assets across the globe, excluding China
- Shares in EFE have spiked following the announcement, up 34.6 per cent at 7.4 cents
Eastern Iron (EFE) has executed an agreement with a Chinese lithium producer to develop its Trigg Hill Project and acquire other lithium assets.
The ASX-lister signed a strategic partnership with Ya Hua International Investment and Development Co, a subsidiary of Sichuan Yahua Industrial Group Co, in September.
Together the two businesses have agreed to advance the tantalum and lithium asset in WA’s East Pilbara region, which EFE has the option to acquire.
Yahua Group has significant experience developing similar lithium salt assets in China and is one of the major lithium hydroxide and carbonate producers in the country, with customers such as Tesla.
Under its deal with EFE, the Chinese group will have first dibs to any of the offtake spodumene concentrate from Trigg Hill.
Additionally, the two parties will also form joint ventures to buy and explore new lithium assets across the globe, excluding China.
“We are excited to be working with Eastern Iron, who we believe is likely to be a strong source of spodumene concentrates in the future,” said Xin Gao, Managing Director of Yahoo Group.
“We see many potential cooperation between us on acquisition and development of
lithium projects and look forward to exploring a deeper relationship over time.”
Meanwhile, Eastern Iron’s Chairman Eddie King thanked Yahua for their investment.
“Following Yahua’s substantial investment in EFE, the Strategic Partnership Agreement with Yahua is a transformational agreement for the company and should be an exciting phase for all stakeholders involved with Eastern Iron,” he said.
Shares in Eastern Iron have spiked following today’s partnership announcement, trading up 34.6 per cent at 7.4 cents at 11:27 am AEDT.