FYI Resources enters exclusivity agreement with Alcoa for HPA joint venture negotiations

FYI Resources Ltd (ASX:FYI) (OTCMKTS:FYIRF) (FRA:SDL) has entered an exclusivity agreement with Alcoa Australia Limited which will see the parties undertake detailed negotiations for a possible high purity alumina (HPA) project joint venture. During a 90-day exclusivity period that started on May 5, the parties will undertake further due diligence to establish the technical and commercial viability of establishing a JV for the future development and commercialisation of FYI’s HPA project. This is in line with a Memorandum of Understanding (MoU) initiated by the two parties in September 2020. “Complementary fit” Managing director Roland Hill said: “I am extremely pleased we have progressed the HPA MoU to a period of exclusive discussions with Alcoa, under which we will negotiate towards a potential JV for FYI’s HPA project. “We believe there is a highly complementary fit between the corporate objectives, cultures and operational expertise of FYI and Alcoa.” “Ideal partner” Hill said: “Any commercial agreement would also seek to leverage the corporate capabilities of Alcoa, who are globally recognised as a leading producer of alumina, and FYI who have developed and demonstrated an innovative, fully integrated and environmentally conscious HPA refining process. “We view Alcoa as an ideal partner in which to assist us to achieve our goal of developing the HPA project into a major world-class asset to produce and supply high quality, ultra-pure HPA to meet the increasing global requirements for HPA market-related applications.” MoU pathway FYI announced on September 8, 2020, that it had entered into an MoU with Alcoa to explore the possible joint development of FYI’s HPA project. The MoU established a pathway to progress to a joint venture following the satisfaction of conditions precedent and successful negotiation of mutually beneficial terms. The conditions precedent cover further HPA pilot plant variability trials being successful and continued cooperation between the parties having commercial benefits for both parties. Any commercial arrangement between FYI and Alcoa should provide a clear path for the HPA project development, funding, operation and product marketing. FYI will continue to develop its HPA strategy during the discussions with Alcoa.