The Mineral Resources Limited (ASX: MIN) share price is down 2.35% in early afternoontrade, currently at $57.32 per share.
The S&P/ASX 200 Index (ASX: XJO) mining services provider and lithium producer, closed down 7.7% yesterday. This followed a bearish medium term forecast for lithium prices from Goldman Sachs.
Most every ASX lithium share got hammered yesterday, and it looks like some selling pressure remains today.
Even the announcement of a new joint venture (JV) exploration agreement hasn't been enough to lift the Mineral Resources share price this morning.
What new exploration agreement was announced?
Mineral Resources has entered into a binding term sheet with Marquee Resources Ltd (ASX: MQR) to explore for and develop lithium deposits in a JV across the West Spargoville Project, located in Western Australia.
The Mineral Resources share price is dipping despite the company earning the right to acquire an initial 25% interest in the lithium rights at the project.
To earn that interest, Mineral Resources will fund all the exploration and development costs at West Spargoville, as well as complete a feasibility study within 24 months. The ASX 200 miner will fund at least $1,000,000 of exploration and development activities by the end of this calendar year.
Commenting on the agreement, Marquee executive chairman, Charles Thomas said:
I am extremely happy to announce we are partnering with one of the most innovative and leading mining service companies and one of the world's largest lithium producers.
Mineral Resources has an excellent track record and reputation and I am very pleased that a company of their calibre sees the same potential at WSP as the team at MQR and I do.
Reverse Circulation (RC) drilling targeting lithium at the West Spargoville is currently underway.
Mineral Resources share price snapshot
Despite this week's selling action, the Mineral Resources share price remains up 21% since this time last year. That compares to a 4% year-to-date loss posted by the ASX 200.
