Lithium Plus Minerals Enters Spodumene Offtake Agreement with Global Leader Canmax

Lithium Plus Minerals Ltd (ASX: LPM) has entered a binding Memorandum of Understanding regarding a spodumene offtake agreement with Canmax Technologies Co., Ltd (XSHE: 300390).

Canmax is one of China’s largest producers of lithium hydroxide and carbonate.

The agreement is over LPM’s wholly-owned Bynoe Lithium Project near Darwin in the Northern Territory of Australia.

A full-form binding offtake agreement is to be entered into upon formal grant of the Lei Project Mining Lease.

About Canmax

Canmax specialises in downstream lithium processing, and is involved in various stages of the lithium supply chain.

This stretches from the processing of raw materials to producing high-purity lithium products used in batteries and other applications.

Location

LPM is focused on delivering multiple resource discoveries in two prolific lithium-rich pegmatite fields surrounding the Finniss Lithium Mine.

The Lei Prospect delivered a maiden high-grade resource of 4.1 million tonnes at 1.43% lithium.

The resource has growth potential, as a secondary Lei pegmatite is not included, and is expected to be followed up in future potential drilling programs.

Both mineralised pegmatites remain open at depth.

Endorsement

Bin Guo, LPM executive chairman, commented:

“The MOU announced today with a global leader in downstream lithium processing, Canmax, serves as a significant endorsement of the resource at Lei, and a validation of the potential of our broader Bynoe Lithium Project.

“An initial DSO operating pathway has the potential to generate early cash flows in support of continued high-impact exploration and development.

“This enables pursuit of our goal of becoming a long-term supplier of spodumene concentrate to the expanding lithium battery market.”

Valuation proposition

LPM is currently capped at $14 million, and held over $7 million in cash at the end of March 2024.

This provides an enterprise value around $7 million.

 

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