PERTH (miningweekly.com) – The share price of junior Askari Metals climbed nearly 19% on Thursday on news of a strategic partnership agreement with Shanghai-listed Zhejiang Kanglongda Special Protection Technology Company.

The strategic partnership will pave the way for the potential development of Askari’s lithium projects in the Northern Territory and Western Australia, including its Barrow Creek project, as well as the Yarrie, Talga East and Myrnas Hill projects.

Under the terms of the strategic partnership, Zhejiang Kanglongda will be provided with a preferred offtake position in relation to commercial production from Askari’s Australian lithium projects.

Additionally, Zhejiang Kanglongda will assist Askari with lithium chemical downstream processing techniques and opportunities as well as provide access to capital for future development.

“The lithium partnership agreement with Zhejiang Kanglongda signifies a landmark agreement for the company and validates the potential of our lithium projects within the Northern Territory and the Eastern Pilbara region,” said Askari MD Gino D’Anna.

“Our aggressive exploration mandate has enabled us to delineate areas of high-priority and we are rapidly planning the re-commencement of field activities at our lithium exploration projects, including the recently acquired Myrnas Hill lithium project. Pursuant to the agreement, we will work closely with Zhejiang Kanglongda in the development of lithium downstream products and importantly Zhejiang Kanglongda will provide us with access to key markets within China and provide Askari with access to capital for future development.

“Zhejiang Kanglongda will also be provided with a preferred offtake position at market prices. We believe that Zhejiang Kanglongda is a tier-1 partner for our company and we are very pleased to have the opportunity to work alongside them in the development of our Australian lithium assets.”

D’Anna on Thursday said that Askari was also investigating commercialisation strategies for its copper and gold projects within Australia including a spin-out, which would facilitate the company’s continued concentration on the battery metals sector, and specifically lithium.

Askari shares closed at a high of 47c a share on Thursday.