Ann: Pilbara & Calix enter into Joint Venture Agreement, page-61

they already had decided

ASX / MEDIA ANNOUNCEMENT 28 November 2022Pilbara and Calix enter into Joint VentureAgreement for Mid-Stream DemonstrationPlantPARTIES TO JOINTLY DEVELOP A “MID-STREAM” DEMONSTRATION PLANT AT THE PILGANGOORA PROJECTKEY POINTS• Pilbara Minerals and Calix have executed a joint venture (JV) agreement for the development of a Demonstration Plant at the Pilgangoora Project with the aim of producing lithium salts via an innovative midstream “value added” refining process utilising Calix’s patented calcination technology, as well as for the potential commercialisation of the process.• The objective of the Mid-Stream Demonstration Plant Project is to deliver a superior value-added lithium product enabling lower product cost, reduced carbon energy intensity, and reduction of waste product logistics.• Participating interests in the JV will be 55% Pilbara Minerals and 45% Calix, with each party funding their share of operating and capital costs and Calix licensing their patented technology and calcination knowhow into the JV.• Pilbara Minerals will manage the Demonstration Plant at the Pilgangoora Project, overseeing both the construction and operational phases.• Calix will have a 10% in-kind contribution recognised on the budgeted estimated construction costs of the Demonstration Plant in return for Calix providing an exclusive, worldwide, royalty free licence for its innovative calciner technology to the JV for lithium processing applications.• A successful demonstration of the calcination technology via the Demonstration Plant may then lead to its commercialisation with the JV licensing the technology to the global spodumene processing industry.Further to Pilbara Minerals Limited’s (ASX: PLS) (Pilbara Minerals or the Company) announcement dated 1 June 2022, Pilbara Minerals and Calix (ASX: CXL) (Calix) (or the Parties) are pleased to announce they have executed agreements for the formation of an unincorporated joint venture to potentially develop and operate a demonstration plant (Demonstration Plant), as well as for the formation of an incorporated joint venture for the potential future commercialisation of the Mid-Stream process (Joint Venture or JV).The formalisation of the JV is an important milestone in the progression of the Mid-Stream Demonstration Plant Project. The Project aims to demonstrate a superior value-added lithium product to the existing industry supply chain, while also potentially delivering a significant reduction in carbon intensity, with potential industry benefits including:• Product cost – the flash calcination technology developed by Calix has the potential to treat very fine spodumene concentrate at lower lithia grades and materially improve overall lithia recovery, thereby enabling a lower cost per lithia unit.