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Highlights
- FYI Resources (ASX:FYI) has extended the exclusivity agreement with Alcoa to 5 October 2021.
- The agreement initially had an exclusivity period of 90 days, which was further extended for one more month in August.
- The current extension in the Exclusivity Agreement is aimed to finalise the negotiations of the binding term sheet.
Australia-based High Purity Alumina developer, FYI Resources Limited (ASX:FYI, OTC:FYIRF) continues to make significant advancements at its flagship High-Purity Alumina (HPA) project.
In an upbeat announcement, the Company stated that FYI and Alcoa had mutually agreed to extend the Exclusivity Agreement period to 5th October 2021. The extension of the agreement will allow additional HPA opportunities to be considered and included in the joint venture (JV) term sheet.
Related Article: FYI Resources Limited (ASX:FYI) extends the HPA JV Exclusive Agreement with Alcoa for one month
Alcoa is the world’s largest alumina producer with a robust refinery capacity of more than 17 million metric tons a year, while FYI aims to position itself as one of the leading suppliers of HPA amid skyrocketing demand for alumina in expanding electric vehicle and LED markets.
Earlier extension of Exclusivity Agreement
The exclusivity agreement between FYI and Alcoa was the result of a Memorandum of Understanding signed between both parties in September 2020 to investigate opportunities for the possible joint development and commercialisation of the HPA project.
Both FYI and Alcoa initially agreed to an exclusivity period of 90 days, which, upon mutual agreement, was further extended by one more month in August.
Both the parties had mutually agreed to conduct due diligence, a move to establish commercial and technical feasibility to form a JV for the development of the HPA project. With due diligence completed, both parties have made substantial progress related to the negotiations for the formation of a possible JV.
Related Article: FYI Resources (ASX:FYI) inks exclusivity agreement with Alcoa, Shares up
Exclusivity Agreement extension for value-added opportunities
As of now, both parties have formed an excellent working relationship and a collaborative understanding to explore opportunities for potential development options and future opportunities for an HPA joint venture. Apart from having discussions with Alcoa, FYI has also been engaged in the development of a number of value-added initiatives to strengthen and enhance the position of the joint venture in the market.
As a result, both parties have mutually agreed to extend the exclusivity agreement period to 5 October 2021. The extension will allow both parties to consider additional HPA opportunities and potentially incorporate them into the binding JV Term Sheet.
Related Article: FYI Resources (ASX:FYI) and Alcoa Advancing on HPA Project Development Activities
