Ioneer Ltd. signed a nonbinding letter of intent, contemplating the purchase of up to 250,000 tonnes of sulfur annually from Shell Canada Energy Ltd., for use in the Rhyolite Ridge lithium project in Nevada.

The proposed supply deal represents about 60% of the projected yearly sulfur requirement for the operation. The letter of intent contemplates for both parties to reach a binding sulfur supply deal.

The Australia-listed lithium explorer said the signing of the letter of intent was the first step to securing key reagents for the proposed acid leaching of the lithium-boron ore. Further supply deals for other key reagents are slated to be secured in the near term.