Mineral Resources gains after firming plans for lithium processing tech
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The news: Mineral Resources shares advanced after the mining group set out next steps for the commercialisation of the patented lithium processing technology, LieNA, with joint venture partner Livium.
The numbers: MinRes shares were up 3.4% to $35.58 at 2pm AEDT, making it the day's second best performing ASX 200 stock.
The context: MinRes and ASX small cap Livium have agreed to undertake additional activities to optimise the development of the LieNA technology — used to extract lithium from discarded mining waste — due to tightening of lithium market conditions since the companies' partnership first commenced in 2023.
The additional activities will include an assessment of alternate commercialisation pathways for the LieNA technology, and the selection of the preferred lithium product for the LieNA development, including the potential to produce a battery-grade lithium carbonate.
It follows MinRes and Livium's development and operation of a pilot plant, successful refinement of high quality lithium phosphate and completion of a demonstration plant engineering study.
Those milestones, completed in December, were fully funded by MinRes through a convertible note. Subject to completion of the newly announced activities, MinRes' convertible note will convert into equity in a new joint venture with Livium. Both companies will each hold a 50% interest in the joint venture entity, LieNA Pty, which wholly owns the LieNA technology.
If the new activities are not completed successfully and MinRes elects not to convert to equity, the joint venture entity will pay MinRes 50% of the value of the LieNA technology, as agreed or determined by an expert, as repayment of the purchase price under the convertible note.
Following successful completion of the additional activities, MinRes and Livium plan to initially licence the LieNA technology to a semi-commercial facility, which MinRes can elect to independently fund, develop and operate.
The source: ASX announcement
