Scorpion Minerals Limited (ASX:SCN), an Australian mineral exploration and resource development company focused on discovering world-class deposits, has entered a Memorandum of Understanding (MOU) with GreatPower Nickel and Cobalt Materials to advance lithium opportunities in Western Australia. The agreement will see GreatPower provide Scorpion with staged funding to advance a lithium project through to resource definition and production. Scorpion’s current efforts are centred on its Pharos Project located in the Murchison Province of Western Australia.
Under the terms of the MOU, GreatPower will provide USD$2 million upfront to advance a lithium project to a JORC compliant resource estimate of 10MT at 1.0% LiO2. An additional USD$8 million will be provided upon definition of the JORC compliant resource. GreatPower will also organise mine development funding once statutory mining approvals are issued. In return, GreatPower will receive up to 90% offtake rights from the lithium project and has expressed interest in building a solar power plant to service the mine development and operations.
Scorpion Minerals CEO Michael Fotios commented, “Scorpion is delighted to be partnering with GreatPower – an extremely well credentialed and experienced energy storage manufacturer in China. The fact that we have attracted the interest of such a significant Chinese player, speaks volumes to the underlying quality of our lithium assets in WA, and the capabilities of our management team to advance these assets through to production.” GreatPower’s Chairman, DongQiang (Aaron) Cao, noted the MOU as a cornerstone of the company’s strategic move toward collaboration and development of upstream lithium resources.
GreatPower, established in 2006, employs over 400 people and has an annual revenue of over RMB4 billion (USD$560 million). The company has a proven track record in producing and delivering upstream raw materials products including metal cobalt, nickel sulphate, and other battery materials, including EV battery recycling. The MOU is valid for a 12-month period, with the potential for extension upon mutual agreement.
