Kidman to process Earl Grey lithium ore at nearby Poseidon plant

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Image credit: Kidman Resources ASX release

Diversified resource company Kidman Resources has secured an exclusive right to use Poseidon Nickel’s nearby Lake Johnston processing plant to treat ore from its Earl Gray lithium deposit near Southern Cross in WA.

Image credit: Kidman Resources ASX release
Image credit: Kidman Resources ASX release

Under the three-year agreement, Kidman has an exclusive option to lease the Lake Johnston plant, located approximately 100km from Earl Grey.

According to Kidman Managing Director Martin Donohue, the company will pay Poseidon a non-refundable deposit of $500,000 for the option, which expires on 31 August, 2017.

“This agreement paves the way for Kidman to become a fully-fledged lithium producer very quickly and for very little capital outlay,” Mr Donohue said.

Adertisement

“With the option over the plant secured, we will now push ahead as fast as possible with the engineering studies and the completion of the maiden JORC Resources at Earl Grey.”

He said Kidman is planning to build its own plant at Mt Holland while operating the Lake Johnston plant, benefiting from the knowledge and experience it gains from operating the plant.