New structure for Western Australian Lithium Project

- February 16th, 2011

Mineweb reports that partners in the Mount Marion lithium project in Western Australia, Reed Resources Ltd (ASX:RDR; OTC:RDRUY), and Mineral Resources Ltd (MRL) will combine their equities into a company which they say will streamline the downstream processing.

Mineweb reports that partners in the Mount Marion lithium project in Western Australia, Reed Resources Ltd (ASX:RDR; OTC:RDRUY), and Mineral Resources Ltd (MRL) will combine their equities into a company which they say will streamline the downstream processing.

The market news is quoted as saying:

The existing arrangement committed MRL to build, own and operate processing facilities, fund all development costs and operate the project, to earn 40% of the profits.  The revised agreement would see MRL will continue to fund and operate the project, with the profit right converted into an equity interest equivalent to 30% of the issued and allotted share capital in RIM.

This, Reed Resources chief executive Chris Reed said, will achieve greater alignment of interests for the downstream processing of spodumene to battery grade lithium carbonate.

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