Key Highlights

  • Pursuit Minerals (ASX:PUR) has executed a non-binding MoU with EcoPro Innovation for a proposed US$40 million Investment and funding package.
  • EcoPro proposes a US$20 million Equity investment for 20% of the Argentine project subsidiary, with Pursuit retaining 80% ownership and operational control.
  • The MoU includes up to US$20 million in advance funding and offtake of 100% of Stage 1 output, about 5,000 tonnes per annum of lithium carbonate equivalent.
  • Pursuit must still procure up to US$120 million of third-party senior secured project debt, and conditions must be satisfied by 31 December 2027.

Pursuit Minerals Ltd (ASX:PUR) announced on 9 November 2026 that it has signed a strategic memorandum of understanding with EcoPro Innovation Co., Ltd., part of the South Korean EcoPro battery materials group. The proposal covers the Rio Grande Sur Lithium Project in Salta Province, Argentina, and combines equity, advance funding and long-term lithium offtake.

Proposed Equity, Funding and Offtake Terms

Under the MoU, EcoPro would invest US$20 million for a 20% stake in the Subsidiary that holds the project, leaving Pursuit with 80% and operational control. A further US$20 million would be provided as advance funding, drawn against agreed development milestones and repaid through future product deliveries.

EcoPro would also negotiate offtake for 100% of Stage 1 production, about 5,000 tonnes per annum of lithium carbonate equivalent, with a tolerance of plus or minus 10% at Pursuit’s option. Pricing would reference the Fastmarkets Lithium Carbonate Benchmark on a CIF Asia basis.

The Project Financing Requirement

The pre-feasibility study for the 5,000 tonne-per-annum operation outlined total funding of US$156.63 million, comprising US$130.12 million in construction costs, US$12.41 million in contingency, US$13.03 million of interest during construction and US$1.07 million of financing costs. The company says these estimates remain subject to detailed engineering.

Pursuit is required to procure up to US$120 million of senior secured Debt from third-party lenders. The release notes that the debt is subject to financing arrangements and lender approvals, and no lender has been named in the announcement.

Scale, Expansion and the Non-Binding Nature of the MoU

The project hosts a JORC-compliant resource of about 1.264 million tonnes of lithium carbonate equivalent, of which 705,000 tonnes is Indicated and 559,000 tonnes is Inferred. A later pre-feasibility addendum describes a staged expansion to 17,500 tonnes per annum, supported by Probable Reserves of about 438,000 tonnes.

The MoU is non-binding in respect of the investment, funding and offtake arrangements. The company states there is no assurance that definitive agreements will be executed or that the transaction will proceed on the terms outlined. Conditions include due diligence, product qualification and approvals.

Final Word

The MoU would give Pursuit a potential partner, a funding source and a buyer for initial production, but none of these elements is binding at this stage. The third-party debt requirement of up to US$120 million makes up a large share of the total funding need, and the expansion case depends on work that has not been completed. Progress toward definitive agreements, and the outcome of the third-party debt process, will shape what the MoU ultimately delivers.