Askari listed in early 2021 as a copper-gold explorer, but has since pulled together ground in Western Australia's eastern Pilbara and Barrow Creek in the Northern Territory with lithium potential with an eye on China.

 

And China has been looking at Australia for more of the battery metal.

 

Askari has just signed an agreement with Shanghai-listed Zhejiang Kanglongda designed to appraise and rapidly develop deposits, and allow Askari access to downstream processing opportunities.

 

No dollar value has been put on the agreement, which has an initial 24-month term.

 

Zhejiang Kanglongda will be granted a preferred offtake position on any lithium project Askari develops, and will complete metallurgical tests on bulk samples to deliver suitable lithium concentrates for its markets.

 

In return, Zhejiang Kanglongda will help Askari target end-user markets for its products, including lithium carbonate and lithium hydroxide, and support funding of future developments.

 

Zhejiang Kanglongda has a reported market capitalisation of US$988 million, and is principally engaged in research and development, design, manufacture and sales of protective gloves.

 

It recently moved to 51% ownership of a Chinese lithium sulphate producer, Jiangxi Tiancheng.

 

Askari executive director and 10% shareholder Gino D'Anna said the agreement was a landmark moment for Askari's rapidly developing lithium projects.

 

Field exploration is due to commence at the Myrnas Hill project in the Pilbara, which is 50km from Pilbara Mineral's Pilgangoora operation, and is said to host strongly analogous geology within the "pegmatite goldilocks zone".

 

The area has seen no focused lithium exploration. 

 

It also has the Talga East project, 20km north of the 10.5Mt at 1% Archer lithium deposit, and the nearby Yarrie project. 

 

D'Anna said with the increased focus on lithium, Askari was considering options for its copper and gold projects such as Horry and Burracoppin in WA, including a spin-out.

 

Assays from its maiden Horry drilling near Halls Creek are pending.

 

Askari shares were up 19% this morning to A47c, valuing it at $25 million.

 

It has traded at 16-78c over the past year. Cash at mid-year was $4.4 million.