Tantalex Lithium Resources Corp. has announced it has received and executed a term sheet from Glencore International AG (“Glencore”) on September 8th 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 (3) tranches:
- First Tranche USD 2M upon execution of the marketing offtake agreement (MOA);
- Second Tranche USD 3M upon Glencore’s satisfactory review of the PEA;
- Third Tranche Financing of 1/3 of the total CAPEX required for the Manono Lithium Tailings Project subject to conditions precedent.
- Commitment Fee of 1.5% 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 CEO 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 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% LiO in the Measured and Indicated category.
- 6,63 million tonnes in total Inferred Mineral Resources at a grade of 0,49% LiO.
- Lithium contained in spodumene and amenable for production of 6% LiO Spodumene Concentrate (SC6).