Mr. Eric Allard reports
TANTALEX LITHIUM ANNOUNCES START OF COMMISSIONING ON ITS TITAN TIN AND TANTALUM PLANT
Tantalex Lithium Resources Corp.'s majority-owned subsidiary United Cominiere SAS has started commissioning on its Titan plant located in the vicinity of Manono, the Democratic Republic of the Congo (DRC).
The Titan plant, which has been designed with a capacity of 130 tonnes per hour, is now entirely assembled and ready to process its first ore. The commissioning period will last up to three weeks and the first ore is expected for export in September.
Eric Allard, chief executive officer of Tantalex Lithium, commented: "Our team in the DRC have worked relentlessly in challenging conditions over the last few months to build the Titan plant and I could not be more proud of what they have accomplished. This is transformational for our company as we progress towards a revenue-generating mining company and demonstrate our commitment to the DRC in bringing critical mineral discoveries and resources to industrial production stage.
Supply chain assessment, due diligence and monitoring
Tantalex is also pleased to announce it has secured the services of
RCS Global Group/Better Mining
to implement its upstream assurance mechanism (UAM) services for its mining operations on the Titan plant. This mechanism combines two permanent processes: due diligence and monitoring (Better Mining) and digital supply chain traceability (RCS Trace).
Through this service agreement, Tantalex is implementing a traceability system to enable the export of tin and tantalum from the DRC in compliance with the provisions of the Dodd-Frank Act, Section 1502, the Responsible Minerals Initiative's (RMI) responsible sourcing requirements and OECD Due Diligence Guidance (OECD DD Guidance -- v3) for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs). It allows supply chain actors to know whether sourcing activities are free from conflicts, human and labour rights abuses, and unacceptable health and safety hazards.
Community development plan
Tantalex has established a continuing relationship with the Carter Center since February, 2023, and secured its formal assistance to guide the implementation of an exemplary community development plan for the Titan project, the first of its kind in both Tanganyika and Haut-Lomami provinces.
Since 2007, the Carter Center's Human Rights House has been partnering with Congolese local civil society organization and human rights activists to create lasting changes by promoting collaborative action and establishing networks of like-minded organizations; providing technical and organizational training; and connecting them with needed resources. Through these partners, the centre currently supports efforts aimed at protecting human rights defenders, advancing women's rights and promoting positive engagement of youth in public life.
In 2018, the Carter Center inspired modifications to the DRC Mining Code of new provisions concerning community development plans to be established in collaboration with the communities affected by mining projects.
In May, 2022, to help mining companies operating in the DRC implement these new regulations, the Carter Center produced a practical handbook to negotiations, instructions and execution of the specifications of social responsibility for mining companies in the DRC, with the financial support of German Cooperation (GIZ).
Bridge loan agreement
The corporation has entered into a bridge loan agreement with a private investor at arm's length whereby it received a loan of $500,000 (U.S.). The loan is unsecured, bears an interest fee of 10 per cent and is due 60 days from the date of the execution of the bridge loan agreement. The proceeds from the loan will be used for general working capital and progressing on the completion of the Titan plant construction and advancing the Manono tailings preliminary economic assessment and feasibility study.
Amendment to the AfriMet grid promissory notes
The corporation has amended two grid promissory notes of a principal amount of $1-million (U.S.) each issued in favour of AfriMet Resources AG. The first grid promissory note was issued on March 30, 2022, and the second grid promissory note was issued on July 20, 2022. Both grid promissory notes were amended in order to extend the maturity date by one year to March 30, 2024, for grid promissory note 1 and to July 20, 2024, for grid promissory note 2. Also, the interest rate was increased to 12.5 per cent per annum, calculated and compounded monthly. Such interest rate accrues starting Aug. 1, 2023.
The amendment to grid promissory note 1 and grid promissory note 2 is a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, as AfriMet is a significant shareholder of the corporation. However, such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value and the consideration for the notes would not exceed 25 per cent of the corporation's market capitalization. The corporation did not file a material change report in respect of the related party transaction at least 21 days prior to the closing of the amendments, which the corporation deems reasonable in the circumstances to close the amendments to the notes in an expeditious manner.
Amendment to loan agreement with Trade Cloud
The corporation has amended a loan agreement entered with Trade Cloud Services Pte. Ltd. of a principal amount of $3-million (U.S.). The loan has been amended in order to extend the maturity date to Jan. 31, 2024, as the early repayment date and March 31, 2024, as the late repayment date. A service fee of 4 per cent will be added on the principal which is on-line with the gross fee provided by the Board Lubumbashi sales price which will be based on the first 1,800 dry metric tonnes of tin concentrates produced by the Lubule project, an increase of 600 dry metric tonnes from the original loan agreement.
The amendment to the loan agreement is a related party transaction as defined under MI 61-101 as Matthew Botell, a director of the corporation, is a principal of Trade Cloud. However, such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value and the consideration for the loan would not exceed 25 per cent of the
corporation's market capitalization. The corporation did not file a material change report in respect of the related party transaction at least 21 days prior to the closing of the amendments, which the corporation deems reasonable in the circumstances to close the amendments to the loan agreement in an expeditious manner.
About Tantalex Lithium Resources Corp.
Tantalex Lithium is an exploration- and development-stage mining company engaged in the acquisition, exploration, development and distribution of lithium, tin, tantalum and other high-tech mineral properties in Africa.
It is currently focused on developing its lithium assets in the prolific Manono area in the Democratic Republic of Congo, the Manono lithium tailings project and the pegmatite corridor exploration program.
We seek Safe Harbor.
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