Pilbara Minerals Limited and Calix Limited to announce they have reached agreement on key commercial terms for the formation of a Joint Venture between the parties for the future development of a Demonstration Plant, as well as for the potential future commercialisation of the (Mid Stream Project) process. Proposed Commercial Terms for Joint Venture Pilbara Minerals and Calix have entered into an amended and binding Memorandum of
Understanding (MoU), initially executed in May 2021. The amendments to the MoU record the Parties' binding agreement for the following: the progression of Front End Engineering Design (FEED Studies) beyond the completed Scoping Study, supporting a final investment decision for the Demonstration Plant, which is targeted for early 2023; the generation of market samples from a pilot test work programme (Pilot Testwork Programme) for the execution of a market engagement program to help inform the marketability and selling price outcomes of the targeted "value added" lithium salt product to be produced; and for the Parties to negotiate in good faith on an exclusive and binding basis a formal Joint Venture Agreement for the funding and development of the Demonstration Plant and a potential future commercialisation pathway on terms materially consistent with the commercial terms agreed in the MoU and otherwise reasonable and customary for joint ventures of this kind. The JV will be established upon the parties finalising and entering into a Formal Joint Venture Agreement which is expected to occur in Third Quarter 2022.
Next steps: Parties intend to finalise and execute the formal Joint Venture Agreement in Third Quarter 2022; Market Samples - a continuous Pilot Testwork Programme to produce lithium phosphate samples for a detailed market engagement program will be undertaken to help inform the project of the likely marketability and selling price outcomes of the lithium phosphate salt product being produced; FEED Studies - progression of FEED Studies will be carried out to support a final investment decision to move forward with developing the Demonstration Plant and following it successful validation for the commercialisation of the technology across industry globally; and MMI grant execution - the Parties will liaise with the Australian Government to finalise the execution of the MMI grant funding.