Lithium Plus inks spodumene offtake MOU with China’s Canmax

Lithium Plus Minerals (ASX:LPM) has confirmed its execution of a first-stage non-binding MOU outlining spodumene offtake from the Lei project.

Inking the deal with Canmax, LPM has agreed – conceptually – to send the latter up to 50% of all future production at LPM’s flagship.

Canmax is a Chinese company and a heavyweight in the downstream lithium space, listed on the Shanghai stock exchange.

Payments made to LPM will be “a function of profit from the sale of lithium hydroxide or carbonate, having consideration for Lei Project mining, transportation and processing costs.”

Once LPM officially wins a mining lease at Lei, Canmax will move ahead to a legally binding MOU offtake deal, the former reported on Wednesday.

“An initial DSO operating pathway has the potential to generate early cash flows in support of continued high-impact exploration and development,” LPM exec chair Dr. Bin Guo said.

“This enables pursuit of our goal of becoming a long-term supplier of spodumene concentrate to the expanding lithium battery market.

“As a starter operation, Lei offers numerous potential advantages, such as expected low upfront capital requirements, minimal environmental impact, and a simple approach for permitting and mine construction.”

LPM last traded at 11cps.