- Global Lithium Resources (GL1) signs an offtake deal with Suzhou TA&A Ultra Clean Technology
- Under the 10-year agreement, Suzhou will support the production of GL1’s spodumene concentrate and acquire no less than 30 per cent of available product
- Suzhou will also have the opportunity to increase the quantity of product up to 15 per cent in each contract year
- Pricing will be calculated based on a market price formula and will be measured by metric tonne in USD
- Global Lithium shares are up 9.4 per cent at $1.63 per share
Global Lithium Resources (GL1) has signed an offtake deal with Suzhou TA&A Ultra Clean Technology which will support the production of spodumene concentrate financially for 10 years.
The China-based company has signed a term sheet with GL1 setting out the conditions of an offtake agreement.
Under the agreement, Suzhou will acquire at least 30 per cent of available product from GL1’s operations.
Suzhou will also have the opportunity to increase the quantity of product up to 15 per cent in each contract year. Suzhou TA&A is GL1’s largest shareholder holding 9.4 per cent.
“As Global Lithium continues to advance our significant West Australian lithium portfolio, having the continued support of a world leader like Suzhou TA&A is truly an exceptional vote of confidence in our Company, our people and our assets,” commented Warrick Hazeldine, Non-Executive Chair or Global Lithium.
“Having joined our register in December 2021 as a cornerstone investor, Suzhou TA&A has provided tremendous support in not only maintaining their 9.4% stake but also providing invaluable introductions and assistance, which has led us to signing this Strategic Offtake Agreement.”
Suzhou is the controlling shareholder of Yibin Tianyi, a lithium hydroxide producer and operates as a joint venture with CATL, the world’s largest electronic vehicle battery producer and major shareholder of Yibin.
The agreement is subject to a condition precedent, which states that the agreement will only become effective if the respective Board of Directors or the Board of Directors of an affiliate approves it within 60 days. If this requirement is not met, any party has the right to cancel the agreement.
Pricing will be calculated based on a market price formula and will be measured by metric tonne in USD.
Shares in Global Lithium are up 9.4 per cent at $1.63 per share at 1:00 pm AEDT.