Not far away from ACP, certainly opens doors in the future....

Not far away from ACP, certainly opens doors in the future.

MinRes to develop lithium processing hub.

Mineral Resources Limited (ASX: MIN) (MinRes or Company) has entered into a Binding Heads of Agreement subject to conditions with Poseidon Nickel Limited (ASX: POS) (Poseidon) to acquire the Lake Johnston nickel concentrator plant and tenure (Lake Johnston).

MinRes intends to develop Lake Johnston as a lithium processing hub in the southern Goldfields region. The acquisition aligns with the strategy to process fines from the Company’s Bald Hill and Mt Marion lithium operations, new discoveries made by MinRes in the region and third-party ore in exchange for project equity.

Lake Johnston is a nickel concentrator plant with a flotation circuit that has front-end capacity of 1.5 million tonnes per annum and is capable of being converted to treat lithium ores, including dense media separation fines.

The asset is licensed to operate to 2041 and has an active groundwater extraction licence. On-site infrastructure includes an airstrip, 200-person camp, electrical infrastructure, workshops and laboratories.

Internal studies by MinRes indicated repurposing a brownfields site would reduce the approvals timelines by circa two years compared to a greenfields development, in addition to significant capital savings.

Located approximately 185 kilometres southwest of Kalgoorlie, the acquired tenure covers 86km2 with one exploration license and 10 mining leases. MinRes will own the tenure outright, including all mineral rights.