Australian Strategic Materials Ltd (ASX:ASM) has passed a key milestone with progression of a conditional investment by a consortium of South Korean investors toward realisation, after due diligence on its flagship Dubbo specialty metals project in New South Wales was completed successfully.
Delayed due to COVID-19 restrictions, ASM recently invited the consortium to an extensive Australian due diligence visit.
This included visiting the project site in Dubbo and discussing ASM’s research partnerships and business activities in Australia.
Read: Australian Strategic Materials progresses financing arrangements for Dubbo Project
Working toward binding agreement
“We are very pleased to have successfully concluded the due diligence process,” Australian Strategic Materials managing director David Woodall said.
“Together we are now focused on securing a significant South Korean, strategic investor to partner with ASM on its Dubbo Project and to completing the terms for a formal binding agreement.
“Our relationship with our Korean partners continues to go from strength to strength.”
Securing critical metal supply
Spokesperson for the investing partnership, Pumsoo Ra, who is CEO and founder of Cerritos Holdings Co., Ltd, said the partnership was committed to working with ASM to finalise an investment.
“It is clear that ASM has the resources and technical capacity to partner with us to support the supply chain of critical metals needed for the production of clean energy technologies such as electric vehicles and renewable energy generation capacity, as well as advanced electronics,” Ra said.
“We need that supply chain to be secure and reliable, and we look forward to continuing our discussions with ASM and our partners in Korea.”
About Australian Strategic Materials
Australian Strategic Materials is focused on the production of specialty metals and owns the Dubbo Project in Central West NSW, considered a long-term resource of rare earth, zirconium, niobium, and hafnium – critical materials for a diverse range of emerging and sustainable technologies.
The pilot plant in South Korea has proven the commercial scalability of the process and successfully produced a range of high-purity metals and alloys, including titanium, neodymium, praseodymium, dysprosium, and zirconium.
Following this success, ASM’s first metallisation plant will be constructed in South Korea to initially supply a range of critical metals including rare earths, zirconium, and titanium