MSB is pleased to announce that it has entered into a non-binding Memorandum of Understanding (the 'MOU') with the Japanese conglomerate
The MOU intends to create a partnership of the Project. The MOU also addresses the development of the Chilean lithium industry, by partnering to introduce other leading edge efficient and environmentally friendly technologies for processing.
The strategic alliance includes potential off-take and funding rights for the Stage One of the Project; potential participation, off-take and funding rights for future expansions of the Project, and further strategic collaboration for new developments in
In particular, the parties aim to achieve the following goals as a result of such strategic alliance: Off-Take Rights - Mitsui will have the right to purchase up to 15,000 tonnes annually of high purity lithium carbonate battery grade production from the Stage One of the Project for 10 years, extendable for 2 consecutive 5 years periods. The parties will agree on a price structure and terms of the off-take in a later stage, in order to be sufficiently bankable to support's MSB's debt funding requirements.
The parties will leverage Mitsui's considerable global logistics and battery materials marketing expertise on the distribution of the products.
Right to Participate in Funding of Maricunga's Stage One - Mitsui will have the right to participate directly in the funding of the Stage One of the Project. The parties will consider an optimized funding structure through a combination of equity-like and debt-like options.
Participation in Future Expansions, Off-Take and Funding Rights - Subject to the parties agreeing to a financing proposal where Mitsui provides a relevant portion of the necessary funding of the capital expenditures required for the future expansion of the Project, Mitsui will have the first option for an off-take agreement to purchase a relevant portion of the future production of the expansion.
MSB will use its best efforts to utilize new technology related to the DLE currently being studied and tested by Mitsui's technical partners.
Further Strategic Collaboration - MSB will collaborate with Mitsui for the development of other lithium related businesses in the country by introducing efficient and environmentally friendly processing technologies. In this context, MSB will commit to collaborate with Mitsui and its technical partner to facilitate the development and testing of the DLE technology at the Maricunga Salar, and provide a broader platform for the promotion of this technology.
Terms and details of the definitive agreements will be finalised after completion of all necessary due diligence and transaction structuring and subject to each party's internal approval.
About
MSB is the owner of a lithium and potash project in
About
Mitsui has over 5,600 employees and deploys talent around the globe to identify, develop, and grow businesses in collaboration with a global network of trusted partners. Mitsui has built a strong and diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and Infrastructure, and Chemicals industries.
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Contact:
Tel: +1 604 262 8835
Email: gplayford@bearinglithium.com
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