Iondrive Ltd (ASX:ION), previously operating under the name Southern Gold Ltd, has embarked on a significant strategic move in the pursuit of clean energy minerals by forming a partnership with a subsidiary of KoBold Metals Company, a US-based mineral exploration firm.
This collaboration forged through an earn-in and joint venture agreement, focuses on advancing Iondrive's lithium projects in South Korea, specifically in Samguen, Seobyeok, Danyang, Seosan and Cheonpyeong.
Location map of KoBold JV lithium projects and ION lithium projects.
KoBold Metals stands out in the mineral exploration sector with its innovative approach, combining geology, geoscience and cutting-edge technologies like data science, machine learning and artificial intelligence. Its mission aligns with the growing demand for critical minerals essential for the clean energy transition, particularly in the burgeoning electric vehicle sector.
Backed by prestigious technology investors such as Breakthrough Energy Ventures, initiated by Bill Gates, and the Silicon Valley venture capital firm Andreessen Horowitz, KoBold also enjoys the support of institutional investors like T. Rowe Price and the Canadian Pension Plan Investment Board. This backing underscores KoBold's commitment to pioneering in the field of critical mineral exploration.
Under the terms of their agreement, KoBold can earn a 75% stake in Iondrive's greenfields projects through a two-stage investment totalling A$7 million over a five-year span:
- Stage 1: exploration and evaluation of Samguen, Seobyeok, Danyang, Seosan and Cheongpyeong lithium projects, A$2 million sole funded by November 2026 for 51% interest, with a minimum spend of $500,000 by May 2025.
- Stage 2: the option to sole fund exploration of an additional A$5 million by November 2028 for a total 75% interest.
Iondrive retains the option to hold a 25% interest through proportionate funding. If its interest falls below 10%, this interest is replaced with a 1% net smelter royalty, subject to a US$9,540,000 cap.
The agreement stipulates a minimum expenditure of A$500,000 by KoBold within the first 18 months before it can opt out of the agreement.
Additionally, Iondrive will serve as the in-country Field Operator for at least 18 months, a role that will aid in reducing its operational costs in South Korea. This partnership marks a significant step in Iondrive's strategic focus on minerals pivotal for the transition to clean energy.
“We are extremely excited to partner with KoBold, a global player in lithium and critical minerals exploration. This joint venture underscores South Korea's untapped lithium potential, especially in light of the growing demand for lithium in the battery and EV sectors both here and globally,” Iondrive managing director Robert Smillie said.
“KoBold will earn stakes in 5 of our 6 greenfields lithium projects, and Iondrive will continue to advance our Yeondong Lithium Project.
"I am very pleased that the agreement also allows for future collaborative lithium exploration, leveraging ION’s extensive geological database and KoBold’s exploration expertise.
"This new partnership holds great promise for harnessing South Korea's lithium resources and is an important pathway forward for our stated strategy of focussing on minerals critical to the clean energy transition, together with the commercialisation of ION’s next-generation battery technologies.”
Exploration to begin shortly
Under the recently established agreement, exploration activities are set to begin this month.
“KoBold is pleased to enter into an agreement with Iondrive to explore the lithium potential of South Korea. Iondrive has identified several projects with prospective geology and historical lithium anomalies that have remained unexplored for decades, KoBold Metals Company CEO Kurt House said.
“KoBold’s library of analytical tools and proprietary technology are being applied to these projects to maximise the effectiveness of exploration and increase our chances of a significant discovery.
“By exploring for lithium in collaboration with the in-country expertise of Iondrive, we are not just advancing KoBold’s mission but also supporting South Korea in their strategic goal of developing a secure supply chain of critical minerals.”
Exploration will kick off with a series of field operations including stream sediment sampling, rock-chip sampling, and detailed geological mapping.
The upcoming months will see these activities unfold across the designated project areas.
Additionally, targeted fieldwork is planned at the Seobyeok Lithium Project, aiming to verify the positions of pegmatite dikes previously identified by the Korea Institute of Geoscience and Mineral Resources (KIGAM). This comprehensive exploration strategy marks a significant step forward in the joint venture's objectives.