Lithium Energy signs second Chinese Li offtake deal 2017-01-24 07:33 ET - News Release
Mr. James Walker reports
LITHIUM ENERGY PRODUCTS SIGNS MOU WITH OPTIMUM NANO FOR LITHIUM COMPOUNDS
Lithium Energy Products Inc. has signed a memorandum of understanding with Shenzhen Optimum Nano Energy Co. Ltd. for 500 tonnes per month of industrial-grade lithium carbonate.
Optimum Nano is one of China's largest lithium-ion battery manufacturers with sales in excess of $1-billion (U.S.). Its products are exported to more than 40 countries around the world, including the United States, Canada, Germany, Italy, India, Indonesia and Australia. Optimum Nano was selected as one of the top-100 industrial enterprises of Shenzhen in 2016.
Basil Botha, chairman and president of LEP, said: "This second MOU, with one of China's biggest and best-known battery manufacturers, establishes Lithium Energy Products as a credible supplier to the Chinese market. As with the previous MOU announced on Jan. 17, this buyer understands that we are early stage and that no production decision has been taken and may not be achieved for a few years; however, we are also in a position to seek offtake agreements with other producers, so we intend to pursue producers and near-term producers in order to begin to supply our customers in China, before we reach production at any of our own projects. Given the scale of this demand, we will be stepping up our efforts to sign offtake agreements with lithium companies who are close to production."
Purchase price will be based on prevailing market prices at the time the desired products are sold. Market price will be determined from an average of the previous three-month prices published by the London Metal Exchange, Metal Bulletin and Platts.
The MOU establishes the basic terms to be used in a future offtake agreement between LEP and Optimum Nano. The terms are not comprehensive at this time and may be changed as a binding agreement is negotiated over the coming months.
In addition, the company announces that Michael Hepworth has resigned as vice-president of corporate development, effective immediately. He will continue to offer services as a management consultant to the company for the foreseeable future.
About Lithium Energy Products
Lithium Energy Products has three highly prospective lithium properties in Nevada and Arizona.
Paul Sarjeant, PGeo, is a qualified person as defined by National Instrument 43-101, and has reviewed and approved the technical contents of this news release. Mr. Sarjeant is not independent to the company as he is a director. The property has not been the subject of a NI 43-101 report