Lake Resources (ASX:LKE) Enters into Long-Term Partnership Memorandum of Understanding with Japanese Trading Company – The Market Herald

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  • Lake Resources (LKE) signs a non-binding Memorandum of Understanding with Japanese company Hanwa Co Ltd covering the offtake of up to 25,000 tonnes per annum (tpa) of lithium carbonate for 10 years
  • The long-term offtake proposal, which includes a minimum supply floor of 15,000 tpy and can be extended for a further decade, relates to Lake’s flagship project, Kachi, Argentina.
  • The MoU also paves the way for Hanwa to consider providing financial support mechanisms such as equity investment, possible prepayment on the levy and trade finance facilities in order to enter into a long-term agreement and to build a lasting partnership with Lake.
  • Lake says finalizing a binding offtake agreement with Hanwa will strengthen Lake’s financial position as it moves toward a final investment decision for the Kachi project later this year
  • LKE shares last traded at $1.68 on March 28

Lake Resources NL (LKE) has signed a non-binding memorandum of understanding with Japanese trading company Hanwa Co Ltd covering the offtake of 25,000 tonnes per annum (tpy) of lithium carbonate for 10 years.

The long-term offtake proposal, which includes a minimum supply floor of 15,000 tpy and can be extended for a further decade, relates to Lake’s flagship Kachi project in Argentina’s Catamarca province.

The MoU also paves the way for Hanwa to consider providing financial support mechanisms such as equity investment, possible prepayment on levies and trade finance facilities to enter into a long-term agreement and build a lasting partnership with Lake.

Lake says Hanwa intends to cooperate with Lake not only in marketing and distribution in the Asian market, but also in coordinating a strategic and sustainable supply chain with potential customers in the battery industry. .

“The MoU reflects Hanwa’s intention to move quickly to finalize the terms of a strong, long-term and binding final agreement on the Levy, as well as enable financial support for Lake,” said Lake general manager Steve Promnitz.

“Lake and Hanwa view this MOU as the path to finalizing a binding long-term agreement with the ability to ramp up production and participate in Lake’s other projects to ensure high-quality lithium products with leading ESG benefits are available for Hanwa electric and electric vehicles. battery customers.

The finalization of a binding drawdown agreement with Hanwa will strengthen Lake’s financial position as it moves towards a final investment decision for the Kachi project later this year, according to the company.

LKE shares last traded at $1.68 on March 28.

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