The share price of Lepidico (ASX: LPD) was up around 2.56% heading into the close on news the lithium explorer/developer had secured a lithium hydroxide offtake agreement with Luxembourg-based raw materials company, Traxys Group.
As a global provider of financial solutions for the mining, metals, and minerals industries, Traxys will act as principal to purchase and assume title and risk for delivery of lithium hydroxide and on-sell the products to end users.
There’s also an option for the agreement to be expanded to other products manufactured by Lepidico by mutual agreement.
The term of the agreement is the later of 7 years or the delivery of 35,000mt of lithium hydroxide with an option to extend by mutual agreement.
Traxys will also act as agent for 100% of the production of caesium sulfate solution — 400 tonnes per year — from the chemical plant.
In addition to supplying sales-marketing, logistics and trade finance services, Traxys will also act as agent for 100% of the production of caesium sulfate solution from the chemical plant.
Both parties will collaborate on customer selection and development, and end-user contract terms.
Under the company’s marketing strategy, Lepidico plans to supply both battery supply chain customers and industrial market customers, with a proportion of spot market sales.
This approach, adds Lepidico will aid the project ramp-up and product approval phases, market risk and establish a customer base that will support longer term growth plans for a phase two project.
Lepidico’s Managing Director Joe Walsh is excited to be working with Traxys through an open, transparent, and collaborative relationship.
“Traxys’ business provides an excellent fit with Lepidico’s target markets and the key strategic products of lithium hydroxide and caesium sulfate,” Walsh said.
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