Mr. Eric Allard reports
MARKETING OFFTAKE AGREEMENT FOR SPODUMENE CONCENTRATE (SC6) TO BE PRODUCED FROM THE MANONO LITHIUM TAILINGS PROJECT LOCATED IN MANONO, TANGANYIKA PROVINCE, IN THE DRC.
Tantalex Lithium Resources Corp.
received and executed a term sheet from Glencore International AG on Sept. 8
for a marketing offtake agreement for the lithium to be produced from its Manono lithium tailings project.
The term sheet includes the following key commercial terms:
Secured convertible financing facility in three tranches;
First tranche $2-million (U.S.) upon execution of the marketing offtake agreement (MOA);
Second tranche $3-million (U.S.) upon Glencore's satisfactory review of the PEA (preliminary economic assessment);
Third tranche financing of one-third of the total capital expenditure required for the Manono lithium tailings project subject to conditions precedent;
Commitment fee of 1.5 per cent flat calculated on the total initial prepayment amount, to be deducted from the prepayment on each disbursement;
The transaction is subject to various CPs, including the execution of definitive agreements and completion of outstanding due diligence to Glencore's satisfaction.
Eric Allard, Tantalex Lithium chief executive officer, commented: "We are delighted to have the support of Glencore for the upcoming Manono lithium tailings project. Glencore already has very well-established mining operations in the DRC [Democratic Republic of the Congo] with important cobalt and copper assets. Their experience and expertise in country will be crucial for developing further our activities in the DRC. The capex financing commitment is a significant milestone in the de-risking of the project and achieving our goal to become the first lithium producer in the DRC."
A maiden mineral resource estimate was initially published in January, 2023, for the Manono lithium tailings project with the following highlights:
5.46 million tonnes at 0.72 per cent lithium oxide in the measured and indicated category;
6.63 million tonnes in total inferred mineral resources at a grade of 0.49 per cent lithium oxide;
lithium contained in spodumene and amenable for production of 6 per cent lithium oxide spodumene concentrate (SC6).
The scientific and technical content of this news release has been reviewed and approved by Gary Pearse, MSc, PEng, who is a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.
About Glencore International AG
Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities that advance everyday life. Through a network of assets, customers and suppliers that spans the globe, it produces, processes, recycles, sources, markets and distributes the commodities that support decarbonization while meeting the energy needs of today.
With around 140,000 employees and contractors and a strong footprint in over 35 countries in both established and emerging regions for natural resources, its marketing and industrial activities are supported by a global network of more than 40 offices.
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 the Congo, the Manono lithium tailings project and the Pegmatite Corridor exploration program.
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