FYI Resources Ltd (ASX:FYI) has signed a memorandum of understanding (MOU) with leading alumina producer Alcoa of Australia Ltd for the potential strategic development of high-purity alumina refining technologies.
The MOU will explore the possibility of the joint development of FYI’s innovative and fully integrated HPA refining project for commercialisation, as well as the establishment of offtake customers into HPA markets.
It also establishes a pathway to progress to a joint venture following the satisfaction of conditions precedent and successful negotiation of mutually beneficial terms.
Shares have been up more than 26% to a new two-year high of 14.5 cents and have risen from 4.2 cents at the market close on June 30.
"Significant step forward"
Managing director Roland Hill said the company was pleased to have the involvement of Alcoa, one of the world’s most successful alumina producers.
He said: “They will join us in co-developing the HPA process flowsheet and refining technologies and commercialising the HPA business model as outlined in our recently published definitive feasibility study (DFS).
“This represents a significant step forward in our project development and is consistent with our broader development objective of attracting globally significant and strategic blue-chip partners to work alongside FYI in commercialising our HPA.
“We look forward to progressing this exciting collaboration to the next stage of project development.”
The MOU will allow the parties to explore and develop respective technical capabilities and capacities in alumina production, with the potential to leverage opportunities in the HPA market.
The conditions precedent cover further HPA pilot plant variability trials being successful and the continued cooperation having commercial benefits for both parties.