Key Highlights

  • Pursuit has signed a non-binding MoU with South Korea's EcoPro Innovation for a package worth up to US$40 million.
  • EcoPro would invest US$20 million for a 20% stake in the Argentine subsidiary, leaving Pursuit with 80% and operational control.
  • Up to US$20 million of milestone-based advance funding would be repaid through future lithium deliveries.
  • The package includes offtake for 100% of stage-one production, expected to be about 5,000 tonnes a year of lithium carbonate equivalent.

Pursuit Minerals (ASX:PUR) announced on 9 November 2026 that it had signed a non-binding Memorandum of Understanding (MOU) with South Korea's EcoPro Innovation. The MoU outlines a proposed Investment and offtake package worth up to US$40 million for the Rio Grande Sur Lithium Project in Salta Province, Argentina.

The package has two parts. EcoPro Innovation would invest US$20 million in Equity for a 20% stake in Pursuit's Argentine subsidiary, leaving Pursuit with 80% and operational control. It has also proposed up to US$20 million in milestone-based advance funding, which would be repaid through future lithium deliveries.

Offtake terms

EcoPro Innovation would negotiate offtake for 100% of stage-one production, which Pursuit expects to be about 5,000 tonnes a year of lithium carbonate equivalent (LCE). Pursuit would hold a 10% Volume variation option. EcoPro would also receive 60 days of exclusivity to negotiate offtake from future expansions.

EcoPro is part of a South Korean group known for battery cathode materials, so securing lithium Supply is strategically relevant to its business.

What management said

Managing Director Aaron Revelle described the proposed investment as a transformational milestone and a major step towards establishing Rio Grande Sur as a significant new lithium producer in Argentina.

He said the funding package, combined with long-term offtake for the entire initial production, had the potential to strengthen the company's development and financing pathway. He added that structuring the investment at project level allowed Pursuit to keep majority ownership and operational control while bringing in a strategic partner aligned with the project's success.

The project

Rio Grande Sur hosts a mineral resource of 1.264 million tonnes LCE at 424 milligrams of lithium per litre, comprising 705,000 tonnes indicated and 559,000 tonnes inferred. A prefeasibility study released on 6 November 2026 outlines an expansion to 17,500 tonnes a year of LCE, supported by a probable ore reserve of 438,000 tonnes LCE.

The funding gap

Stage-one Capital Expenditure is estimated at US$156.63 million. Pursuit must separately secure up to US$120 million in senior secured project Debt to meet that requirement. The EcoPro package, if finalised, would cover only part of the total, so Debt Financing is essential.

Offtake agreements with strategic buyers can help companies secure debt, because lenders gain confidence that output will be sold. That is part of the reason the MoU matters even though it is not binding.

Qualifications

The MoU is non-binding and subject to due diligence, definitive agreements and approvals, with a deadline of 31 December 2027. Many MoUs in the lithium sector have not progressed to binding agreements, particularly during periods of low prices.

Argentina's lithium sector has attracted foreign investment under national incentive schemes, but provincial and national policy changes remain a consideration for investors.

For EcoPro itself, the attraction is likely to be a secure supply of lithium chemicals for its cathode business. Korean battery groups have sought to diversify sourcing away from China in response to US and European supply chain rules. Direct investments at project level in South America's lithium triangle have become a common route for those groups seeking to secure future volumes.

What comes next

Pursuit's next steps are Due Diligence and negotiation of definitive agreements with EcoPro, alongside efforts to secure senior project debt. Pursuit also released the results of a Shareholder meeting on 10 November. A binding agreement would be the key milestone in converting the MoU into funding.