The transaction sees Baichuan taking a 10% stake in MetalsTech by outlaying A$1.8 million for escrowed shares priced at 18c, with a further $756,000 raised by the ASX company from “sophisticated investors”.

MetalsTech listed earlier this year following a $4.3 million IPO.

The company has been focused on the Cancet lithium project in Quebec, where about 1.2km of mineralised pegmatite has been delineated starting from surface.

A maiden resource is to be estimated following recent completion of a 1500m, 18-hole, diamond core drilling program.                

MetalsTech claimed the “strategic alignment with a lithium-ion battery chemicals producer at this juncture will support us in tailoring our feasibility studies beyond spodumene concentrate production … (and investigate) downstream processing opportunities”.

MetalsTech has previously said Cancet has “world class potential”.

The ASX company is also planning to spin out its Bay Lake cobalt project in Ontario into a separate company.

Shares in MetalsTech were up 38% to 23c in morning trade, capitalising the company at $19 million.