The non-binding partnership agreement has been signed pertaining to the development of Askari’s Barrow Creek Lithium Project in the Northern Territory, as well as the Eastern Pilbara lithium assets, namely the Yarrie, Talga East and the Myrnas Hill projects.
Zhejiang will assist Askari with techniques and opportunities in lithium chemical downstream processing.
Furthermore, the Chinese firm will be given a preferred offtake position once commercial production begins at the two lithium projects of Askari Metals.
Askari Metals executive director Gino D’Anna said Zhejiang Kanglongda will provide Askari Metals with access to key markets within China and access to capital for future development.
D’Anna said: “Zhejiang Kanglongda will also be provided with a preferred offtake position at market prices. We believe that Zhejiang Kanglongda is a Tier-1 partner for our company and we are very pleased to have the opportunity to work alongside them in the development of our Australian lithium assets.
“In addition, the company is investigating commercialisation strategies for its copper and gold projects within Australia, including a spin-out, which will facilitate the company’s continued concentration on the battery metals sector, and specifically lithium.”
Askari expects the alliance to support its aggressive exploration mandate and continue exposure to the lithium sector.
Earlier this year, Zhejiang Kanglongda increased its stake in Chinese lithium chemicals producer Jiangxi Tiancheng Lithium Industry to 51%, by purchasing an additional 17.7% interest in the latter.