Plymouth Minerals Ltd. said Oct. 5 that it signed an agreement to form an alliance with lithium carbonate producer Shandong Ruifu Lithium Co. of China in relation to Plymouth's San Jose lithium project in Spain.
The alliance will have an initial term of 18 months, during which Shandong Ruifu will help Plymouth with the technical aspects of the feasibility study on San Jose and will use feedstock from the project to produce salable, battery-grade lithium products and assist in marketing the products.
Plymouth, however, will retain all rights regarding off-take and investment in San Jose and will enter discussions with Shandong Ruifu in good faith.
The company is in the final stages of preparing the project's scoping study prior to submitting the mining application for the proposed mining, processing and environmental aspects of the San Jose project. The application is the final requirement for Plymouth to acquire an initial 50% stake in San Jose, under a deal with its joint venture partner, Valoriza Mineria.
Plymouth can then earn an additional 25% interest in the project, increasing its stake to 75%, after completing San Jose's feasibility study.