Red Dirt Metals (ASX:RDT) signs MoU for potential Mt Ida offtake deal, WA

• Red Dirt Metals (RDT) signs a memorandum of understanding (MoU) with VinES Energy Solutions Joint Stock Company for future offtake and cooperation plans
• Under the potential deal, VinES could offtake up to 45,000 tonnes of spodumene concentrate per annum from Red Dirt’s Mt Ida project in Western Australia
• Red Dirt Metals says this agreement is another key step in its plans to begin mining at Mt Ida before the end of 2023
• RDT shares are down 3.45 per cent to 42 cents at 11:51 am AEDT

Red Dirt Metals (RDT) has signed a memorandum of understanding (MoU) with VinES Energy Solutions Joint Stock Company for future offtake and cooperation plans

This agreement relates to the production of future spodumene concentrate from Red Dirt’s flagship Mt Ida lithium project in Western Australia.

VinES, a member of the largest private conglomerate in Vietnam, may offtake up to 45,000 tonnes of spodumene concentrate per annum. This is subject to Mt Ida’s production capacity and RDT securing funding for development.

Red Dirt Metals said the MoU was another step in its acceleration plans to start mining at Mt Ida before the end of 2023, with initial plans to deliver a direct shipping ore product.

RDT Executive Chair David Flanagan said VinES and its parent company, Vingroup, were pursuing a “clear vision to be a global batter manufacturer”.

“Like Red Dirt’s plans for Mt Ida, VinES recognises the need to execute this strategy at speed,” Mr Flanagan said.

“The capability of the Vingroup has been demonstrated in the successful development, launch and export of the first Vietnamese electric vehicle with another subsidiary company, VinFast.”

Together, the companies will explore opportunities to jointly develop mid-stream and downstream projects in the lithium value chain.

“I believe the MOU with Red Dirt shall lay the sound foundation for our mutual efforts in accelerating the growth of business and seizing opportunities in the electric vehicle supply chain,” VinES CEO Pham Thuy Linh said.

The non-binding MoU has a four-year term from the day of execution, and the parties will work to negotiate a binding offtake agreement in this time frame.

RDT shares were down 3.45 per cent to 42 cents at 11:51 am AEDT.