Tantalex Lithium CEO Eric Allard joined Steve Darling from Proactive to share news the company has announced a significant development for the company.
The company has reached a term sheet agreement with Glencore International AG for a marketing offtake agreement related to lithium production from its Manono Lithium Tailings Project in the Democratic Republic of Congo.
Allard explained that this agreement encompasses several critical components. Firstly, it includes a secured Convertible Financing Facility, with an initial tranche of $2 million to be provided upon the execution of the marketing offtake agreement. The second tranche of $3 million is expected to follow upon Glencore's satisfactory review of the Preliminary Economic Assessment (PEA).
The final tranche will cover the total capital expenditure (CAPEX) required for the Manono Lithium Tailings Project.
Tantalex Lithium had previously released a Maiden Mineral Resource Estimate in 2023 for the Manono Lithium Tailings Project. This estimate revealed substantial lithium resources, with 5.46 million tonnes at 0.72% Li2O in the Measured and Indicated category, and a total of 63 million tonnes in the Inferred Mineral Resources category at a grade of 0.49% Li2O.
This agreement with Glencore marks a significant milestone for Tantalex Lithium, providing both the financial support and a major partner needed to advance its lithium project in Manono. It demonstrates the company's commitment to becoming a prominent player in the lithium market and further solidifies its position as a significant lithium producer.