Canmax signed a non-binding MOU on a lithium spodumene project near Finnis mine

On June 6, Lithium Plus Minerals Limited announced the signing of a non-binding Memorandum of Understanding (MOU) with Canmax Technologies, a major lithium hydroxide producer in China, for a spodumene offtake agreement from the Lei Deposit at the Bynoe Lithium Project near Darwin, Northern Territory, Australia. A binding agreement will follow the formal grant of the Lei Project Mining Lease.

Key terms include Canmax securing 50% of all direct shipping ore (DSO) and spodumene concentrate produced from the Lei Project, with an option for additional supply based on availability. The supply period will commence with commercial production and last three years, with a possible extension by mutual consent. Pricing will be based on a percentage of Canmax's profits from lithium hydroxide/carbonate sales, considering mining, transport, and processing costs. Initially, the product will be DSO, transitioning to spodumene concentrate. Canmax will also assist with project financing.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn