Pure Energy Minerals announced that it has signed an expanded non-binding memorandum of understanding (MOU) with Korean Steelmaker POSCO. The new document expands the scope of an MOU signed last March to include other considerations such as the development of business relationships with potential customers and "consolidation with other lithium development properties/lithium producers."
Pure Energy Minerals (TSXV:PE) announced Tuesday that it has signed an expanded non-binding memorandum of understanding (MOU) with Korean steelmaker POSCO. POSCO and Pure Energy initially signed a non-binding MOU last March for the exploration of Pure Energy's Nevada lithium claims and the development of lithium extraction and processing technologies. The new document expands the scope of the MOU to include other considerations, such as the development of business relationships with potential customers and "consolidation with other lithium development properties/lithium producers." The companies will aim to reach a definitive agreement within the next six months. "We are very pleased with this expanded opportunity for collaboration on our Nevada Lithium project with POSCO," said Pure Energy CEO Robert Mintak in a statement. "Our management team is keen to highlight our strategic U.S. brine resource and explore ways to cooperate with one of world's leading companies in the development of lithium resources and battery materials." POSCO has been in the news lately for its work with Lithium Americas (TSX:LAC) at the latter's Cauchari-Olaroz project in Argentina. The company has been working on its proprietary lithium extraction technology for years, and following positive test results from its demonstration plant at Cauchari-Olaroz, it's now in talks with Lithium Americas to develop a commercial plant. For his part, Lithium Americas CEO John Kanellitsas is positive on Tuesday's announcement from Pure Energy. "[T]his is terrific news for Rob and his team," he said. "It demonstrates POSCO's commitment to having a wide global footprint in the lithium sector. [A]dditional lithium production is going to be required in order for the industry to supply the growing demands of the gigafactory scale projects, and we hope to see more positive announcements from junior developers."