Ziron Technology Corporation owns the intellectual property that underpins ASM's plan to produce cleaner metals from the Dubbo project in New South Wales, including a patented low emission, high purity metal-refining technology that is claimed to be better for the environment than existing energy-intensive metallisation processes.
The pair has worked together since 2016, and last year ASM secured exclusive worldwide rights to ZironTech's processing technology.
Consideration for the deal is the issue of 1.3 million shares, worth around US$2 million, and an initial 5% royalty from any global commercial facility established using the technology, subject to a 2.5% step-down once the payments reach $20 million.
ASM will also acquire the recently-constructed pilot plant constructed in 2020 to confirm the technology, and 100% of joint venture company RMR Tech, having initially owned 10%.
It follows a recent pilot program that successfully produced all the major metals from the Toongi deposit, including zirconium, hafnium, and rare earths.
The deal also provides an opportunity to expand its business with the production of titanium metal and associated alloys, with ASM last week announcing it had successfully produced around 21 kilograms of titanium at 99.8% purity, with 70% less power consumption.
Under the heads of agreement, ZironTech founder Professor Jonghyeon Lee will also be appointed as ASM's chief technical advisor. He will also maintain a 5% interest in ZironTech, but ASM will have a call option over that interest.
ASM's focus is now on a feasibility study that will confirm the optimal size of a full-scale plant in South Korea.
It is also aiming to complete optimisation studies for the Dubbo development that could reduce development costs from A$808 million and $1.3 billion based on production of 500,000 tonnes per annum and 1Mpta.
Dubbo is expected to have a mine life of more than 75 years and is fully permitted.
ASM shares hit the bourse in July at $1.25 and last traded at $2.05, valuing the company at $244 million.
