ASX Lithium Stocks: Jadar soars on partnership deal with China giant
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Jadar Resources (ASX:JDR) shares are on a tear this morning, climbing more than 27% after it executed a non-binding memorandum of understanding with China’s Yahua International Investment and Development.
Under the MoU, the two companies will seek to form a strategic partnership to acquire and develop lithium projects and supply spodumene concentrates globally, with a formal agreement expected within six months.
Importantly for the Jadar, the proposed agreement could see the company sell 100% of the lithium concentrate from the projects it controls to Yahua.
“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,” executive director Adrian Paul said.
Yahua is a wholly owned subsidiary of Sichuan Yahua Industrial Group (Yahua Group), which is principally engaged in the manufacture and sales of civil explosive materials and of lithium salt products.
The Yahua Group is a major Chinese producer of lithium hydroxide and lithium carbonate with an existing 43,000tpa refinery and expansion works for a further 50,000tpa of lithium hydroxide and 1,000tpa of lithium metal.
Meanwhile, Greenwing Resources (ASX:GW1) has received encouraging results from initial exploration work on its San Jorge lithium brine project in Argentina that it had acquired just a couple of months ago.
The initial 34 brine samples taken from surface confirmed an area of elevated lithium in the centre-south of the salt lake, with concentrations of up to 285 milligrams per litre lithium.
Adding further interest, detailed interpretation of the initial passive seismic geophysical survey completed suggests the basin may extend to a depth of up to 600m in the south, double the initial 300m estimate.
The company is designing a drill program to follow-up on these encouraging results.
It has also started assessing processing options for San Jorge including low-cost direct lithium extraction technology.