Orion Minerals Ltd (ASX:ORN, JSE:ORN) has inked a term sheet with Stratega Metals that provides a binding exclusivity agreement for amenability test-work on samples of nickel-copper-cobalt-gold-platinum group element (PGE) concentrates from Orion’s Jacomynspan Nickel-PGE Project in South Africa.
The term sheet gives Orion exclusive rights to enter an earn-in agreement for a 75% interest in Stratega by funding the construction of a demonstration-scale battery minerals refinery.
Stratega holds an exclusive licensing agreement with TCM Research to use a suite of proprietary vapour metallurgical technologies (including advanced carbonylation and chlorination techniques) for base metal refining in the Northern Cape area of South Africa, close to the Jacomynspan project.
“Game-changing technology”
“We are thrilled to have secured exclusive access to what we believe could be game-changing refining technology for the production of battery metal salts and fine carbonyl powders, both of which are experiencing surging demand within the burgeoning battery manufacturing sector,” Orion's managing director and CEO Errol Smart said.
“The battery materials sector is a key focus for Orion due to its strong growth outlook and its pivotal role in driving reduced global carbon emissions.
“Not only is the Stratega/TCM refining process able to produce premium metal products but the process also has low environmental impact and is well-suited for the use of clean, renewable energy.
“The process comprises a chemical vapour technology that does not consume any water, has low energy consumption, produces close to zero emissions and occupies a very small surface area.
“These characteristics make it an ideal fit with Orion’s ambitions to become a fully-integrated mining and processing business that produces premium metal products with strong ESG credentials that are certified from point-of-source to market.”
The TCM technology used by Stratega offers the potential to both increase total metal recoveries and increase the payability of metals-in-concentrate produced from polymetallic sulphide ore, the same ore-type present at Orion’s Jacomynspan and Okiep Copper projects, and Prieska Copper-Zinc Mine.
Orion says the value-added metal products produced by the TCM process – commonly referred to as 'battery precursor products' which include Carbonyl Nickel Powders – can trade at a “considerable” premium to spot metal prices, offering a more competitive return on Orion’s mineral production.