- Lake Resources (LKE) signs a non-binding memorandum of understanding (MoU) agreement with Japan-based Hanwa Co Ltd covering offtake of up to 25,000 tonnes per annum (tpa) lithium carbonate for 10 years
- The long-term offtake proposal, which comes with a minimum supply floor of 15,000 tpa and can be extended for a further decade, relates to Lake’s flagship Kachi project in Argentina
- The MoU also paves the way for Hanwa to consider providing financial support mechanisms such as an equity investment, a potential prepayment on offtake and trade finance facilities to secure a long-term agreement and build a sustainable partnership with Lake
- Lake says finalising a binding offtake agreement with Hanwa will bolster Lake’s financial position as it moves towards a final investment decision for the Kachi project later in the year
- LKE shares last traded at $1.68 on March 28
Lake Resources NL (LKE) has signed a non-binding memorandum of understanding (MoU) agreement with Japan-based trading firm Hanwa Co Ltd covering offtake of up to 25,000 tonnes per annum (tpa) lithium carbonate for 10 years.
The long-term offtake proposal, which comes with a minimum supply floor of 15,000 tpa and can be extended for a further decade, relates to Lake’s flagship Kachi project in the Catamarca Province in Argentina.
The MoU also paves the way for Hanwa to consider providing financial support mechanisms such as an equity investment, a potential prepayment on offtake and trade finance facilities to secure a long-term agreement and build a sustainable partnership with Lake.
Lake says Hanwa intends to co-operate with Lake not only in marketing and distribution in the Asian market but also in co-ordinating a strategic and sustainable supply chain with potential customers in the battery industry.
“The MoU reflects that Hanwa intends to move quickly to progress finalisation of the terms on a strong, long-term, binding final agreement on offtake, as well as allow for financial support for Lake,” Lake Managing Director Steve Promnitz said.
“Both Lake and Hanwa see this MoU as the path to finalisation of a binding long-term agreement with the ability to scale up production and participate in Lake’s other projects to ensure high-quality lithium products with leading ESG benefits are available to Hanwa’s EV and battery customers.”
Finalising a binding offtake agreement with Hanwa will bolster Lake’s financial position as it moves towards a final investment decision for the Kachi project later in the year, the company says.
LKE shares last traded at $1.68 on March 28.