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FYI Resources directors commit to high purity alumina development pathway by exercising share options

Published: 08:53 24 Nov 2020 AEDT

FYI Resources Ltd - FYI Resources directors to exercise their share options in support of high purity alumina development pathway
The HPA market is responding well to the current global post-COVID19 stimulus into the nascent electric vehicle sector

FYI Resources Ltd’s (ASX:FYI) (FRA:SDL) board has unanimously agreed to exercise their FYI options due to expire on November 26, 2020, to raise a total of $238,500. 

The board is fully committed in supporting FYI’s high purity alumina (HPA) development pathway, which has already resulted in excellent market outcomes including the release of a positive definitive feasibility study in March 2020. 

FYI has attracted Tier 1 support, securing an $80 million equity financing commitment via GEM Global Yield LLC SCS and the signing of an MoU for the potential joint development and commercialisation of FYI’s HPA project with the world’s leading alumina producer, Alcoa of Australia Limited.

The funding provides FYI with capital support for the development of its HPA project, particularly at key funding requirement stages.

It will also assist FYI's board in making its final investment decision (FID) for the project.

MoU with Alcoa

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.

Demand for HPA

Demand for HPA, as a specialised product used in a multitude of high-tech applications, including lithium-ion batteries and LED lights, is growing at an annual rate of more than 17%, according to CRU Consulting Group (CRU).

The HPA market is responding well to the current global post-COVID19 stimulus into the nascent electric vehicle (EV) sector and the leverage for HPA in lithium-ion batteries is considerable as every EV needs around up to five kilograms of HPA.

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