Mineral Resources' (ASX:MIN) recent AU$150 million injection by Ganfeng into the Mt Marion project looks more like debt than equity as it has a 7% annual interest and a five-year term, despite expectations of equity funding in a 50:50 joint venture, said Jarden Research in a Monday note.

The research firm noted that in a Hong Kong exchange filing, Ganfeng did not disclose any security related to the injection but said, "the purpose of the assistance is clear, the source of repayment is guaranteed."

At current lithium prices, the company's AU$40 million to AU$60 million earnings from operations in the project are not adequate to offset its cash burn, the note added.

The research firm added that if low prices of lithium persist, the company may have to shut down its Wodgina project operations temporarily, as it is currently dealing with balance sheet pressure due to high debt.

Jarden Research maintained its sell rating on Mineral Resources, with a price target of AU$16.20.

Mineral Resources' shares rose past 1% in recent Tuesday trade.