Prospect Resources has entered a MOU with SCR- Sibelco N.V for the off-take of Arcadia’s ultra-low iron petalite product.
Under the terms of the MOU, the parties agreed to an exclusive period of time to negotiate and execute a binding offtake agreement for Arcadia’s ultra-low iron petalite product.
This exclusivity expires on 1 July 2020.
Whilst the company are happy with the progress of negotiations, they will not be completed by 1 July 2020.
The parties continue to negotiate terms with an expectation that a binding offtake agreement will be executed.
Either party may terminate the MOU if the parties have not executed a binding off-take agreement by 1 September 2020.
At the time of this announcement, Prospect Resources are not aware of any operating lithium mine in the world that can produce ultra-low iron petalite suitable for the Sibelco’s customers in the glass ceramic industry.
Whilst its self-imposed deadline will be missed, shareholders should note that Arcadia is the only JORC compliant deposit in the world that will be able to supply ultra-low iron petalite to these existing customers.
Read more about the Arcadia project