ioneer Ltd (ASX:INR) has signed a non-binding letter of intent (LOI) with Shell Canada Energy for the sale of sulphur to ioneer for use at the Rhyolite Ridge Lithium-Boron Project in Nevada, USA
Under the LOI, ioneer will purchase up to 250,000 tonnes of high-quality sulphur annually from Shell, representing about 60% of the estimated annual sulphur requirement for the Rhyolite Ridge project.
Both parties are expected to work toward turning the LOI into a binding supply agreement.
The signing of the LOI is one of the first steps to securing key reagents for the proposed acid leaching of the project’s lithium-boron Searlesite ore.
ioneer is working toward securing supply agreements for other key reagents.
Cleaner energy solutions
Managing director Bernard Rowe said: “The signing of the LOI is a key step for ioneer as we progress the Rhyolite Ridge Lithium-Boron Project towards production.
“Sulphur is the key input for the acid plant that is the heart of the proposed processing facility as it will provide the acid required for leaching the ore as well as all of the power and steam required to produce lithium carbonate and boric acid at Rhyolite Ridge.
“We are delighted to sign this agreement with Shell and are committed to taking part in the global shift towards providing more and cleaner energy solutions in a sustainable future.”
The purpose of the LOI with Shell is solely to record the present intentions and wishes of the parties.
It is not intended to constitute an offer or acceptance of any provision or give rise to any binding obligations between the parties.
A pre-feasibility study demonstrated the project’s scale, long-life and potential to become the lowest-cost lithium producer in the world as well as the largest lithium producer in the United States.
The definitive feasibility study is due for completion in the first quarter of 2020.