ASX-listed Birimian has signed a MOU with General Lithium Corporation ahead of negotiating an off-take agreement for 200,000 tpa or approximately 55% of the planned capacity output of the Goulamina lithium project.
Under the MOU, the parties have agreed to negotiate the terms of an off-take agreement for supply of 6% Li2O spodumene concentrates from 2020.
The company and GLC have agreed to undertake these negotiations under the MOU until 30 June 2019.
If an off-take agreement is reached during the negotiation period it will only become unconditional subject to Birimian securing financing and approvals to commence development and construction of the Goulamina lithium project.
GLC was established in China in 2006 and the founders and management team have more than 20 years experience in the lithium business.
GLC specialises in the production and sales of lithium chemical products including battery grade and high purity lithium carbonate and lithium hydroxide.
It also produces and supplies a Lithium Iron Phosphate pre-cursor to lithium battery cathode materials manufacturers.
GLC’s current capacity is approximately 22,000 tpa of Lithium Carbonate Equivalents (LCE’s) which is expected to increase to about 80,000 tpa by 2021.
In addition to its current off-take arrangements with other spodumene suppliers for its existing operations, GLC requires additional and diversified supplies to meet its future expansion plans.
Birimian is pleased that GLC has selected the high quality Goulamina spodumene as potentially one of its major sources of feed material for its projected expanded capacity.
Product pricing will be based on global market prices, the specific terms being the subject of ongoing negotiations between GLC and Birimian.
Birimian is in discussions with several other potential off-takers for the balance of its planned production capacity.
With the potential for significant growth in demand for lithium batteries, Birimian will be well placed to be a supplier to this rapidly growing lithium battery sector.