European Lithium (ASX:EUR) reports it has signed a non-binding Memorandum of Understanding (MOU) with investment firm Obeikan Investment Group to build and operate a hydroxide plant in Saudi Arabia.
The company says the agreement seeks to see a hydroxide plant built to process lithium produced at its Wolfsberg Lithium Project in Austria, and will operate as a joint venture (JV) shared equally by European Lithium and Obeikan.
The MOU will be used to negotiate commercial terms for the construction and operation of the plant, and does not give any assurance a binding agreement will be executed.
Commenting on the agreement, European Lithium Chairman Tony Sage says: “The JV with Obeikan will allow EUR to focus its efforts on building the facilities to start mining concentrate in addition to benefiting from the JV opportunities.
“The huge energy cost savings will make Wolfsberg even more robust”
The huge energy cost savings will make Wolfsberg even more robust.”
Also commenting on the MOU, Obeikan Investment Group Chief Executive Officer (CEO) Abdullah Obeikan says: “We are pleased to announce this MOU, a great step ahead in further strengthening the Saudi Australian economic collaboration. In line with Obeikan investment group strategy of accelerating sustainability within the energy field.”
European Lithium has also witness a jump in its share price on the ASX, rising 10.265% to $0.086 as of 1:30pm AWST.
Obeikan Investment Group is one of Saudi Arabia’s 100 largest companies, with more than 3,000 employees and operations in 16 countries. It operates across a diverse range of sectors, including manufacturing, health, technology, and education.
European Lithium is an Australian mining exploration and development company focused on the wholly owned Wolfsberg Lithium project in Austria. The project which is located 270km south of Vienna comprises 22 original and 32 overlapping exploration licences over 11 mining areas.
It also hosts a total measured, indicated, and inferred Mineral Resource Estimate of 12.88 million tonnes @ 1% lithium oxide (Li2O). The company signed a lithium hydroxide offtake agreement with German automotive manufacturer BMW in December for material produced at Wolfsberg.
Images: European Lithium Ltd