Locksley Resources plugs into US supply chains with antimony agreement

• LKY inks non-binding ore sales agreement for antimony feedstock with EV Resources
• Feedstock to be utilised in DeepSolv™ development, providing further exposure to domestic US antimony market
• Deal contingent on negotiating binding ore sales agreement

Special Report: In a bid to accelerate its DeepSolv™ processing technology, Locksley Resources has inked a non-binding antimony ore sales agreement with EV Resources.

While a binding agreement is still under negotiation, LKY says the deal will open access to the US$1 billion domestic US antimony market, while also expanding and diversifying feedstock for development of its DeepSolv™ product.

Locksley Resources (ASX:LKY/OTCQB:LKYRF/FSE:X5L) is developing DeepSolv™ in collaboration with Rice University as an ore-agnostic processing technology that promises much lower energy requirements compared to traditional pyrometallurgy methods, as well as reduced emissions, higher metal recoveries and scalable, modular plants.

Stockhead’s Tylah Tully recently explored the technology partnership with LKY Head of Critical Minerals Allister Caird.

Locksley and EV Resources (EVR) will seek to enter a binding ore sales agreement with a clear commercial framework for a long-term supply partnership, subject to EVR shareholder approval, with LKY to make a $750k strategic investment.

Watch: Locksley’s critical minerals accord with Rice University

Mine-to-market strategy

Locksley’s core strategy is to build out a domestic mine-to-market critical mineral supply chain within the US, taking advantage of a highly supportive government and capital framework.

LKY chair Pat Burke said the agreement has the potential to strengthen the company’s strategy by complementing the Mojave development with additional concentrate supply.

“By securing nearshore feedstock alongside our fast-tracked mining plans in California, Locksley will be well positioned to accelerate the US return to domestic antimony processing,” he said.

“With Rice University’s support and the deployment of our DeepSolv™ technology, our pathway demonstrates that Locksley is assembling the resources, partnerships and technology to ensure secure, scalable, and independent antimony supply for the United States.”

The company’s Mojave antimony & rare earth elements project in California is a cornerstone of its strategy, directly abutting the now famous Mountain Pass Mine held by MP Materials and surrounded by the larger company’s claims.

Demand for antimony in the US has skyrocketed since China all but cut off imports, especially as geopolitical tensions continue to rise globally.

The critical mineral plays an essential role in defence systems, semiconductors and metal alloys.

DeepSolv™ development and validation

Should the two companies come to a binding agreement, EVR’s antimony ore will support the development and deployment of LKY’s DeepSolv™ solvometallurgical antimony processing method, while the Mojave project is still in development.

LKY intends to use the fresh feedstock to:

• Provide beneficiated ore to bridge US requirements until domestic mining begins in earnest
• Validate the DeepSolv™ process across multiple ore types
• Secure 3^rd party material to establish DeepSolv™ scale and access to US market
• Advance production of defence and energy grade antimony products
• Demonstrate practical delivery of domestic processing
• Position Locksley as a leading partner in reshaping North American supply chains for critical minerals

LKY says the ore sale agreement provides mutual strategic benefit for both companies, offering a potential long-term customer for EVR’s concentrate while reinforcing LKY’s access to secure antimony supply for its refining technology.

This article was developed in collaboration with Locksley Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.