MAN signs offtake Letter of Intent with NASDAQ listed US refiner

Our US lithium Investment Mandrake Resources (ASX: MAN) just announced the signing of a non-binding letter of intent (LOI) for offtake to a US based lithium refiner.

The non-binding offtake (once formalised) would see MAN supply 7,500 metric tons per year of lithium chloride to Stardust Power (NASDAQ: SDST) from its Lithium project in Utah.

MAN’s project has a 3.3Mt Lithium Carbonate Equivalent JORC resource estimate.

Stardust is looking to build a lithium refinery in Oklahoma capable of producing 50,000 metric tons of battery-grade lithium carbonate per year.

Stardust Power also holds a downstream offtake agreement with a leading Japanese trading house, covering up to 25,000 metric tons of lithium carbonate per year, reinforcing demand for its refinery output.

Today’s deal outlines a 12-year initial supply term with an option to extend for a further 6 years.

Here were the key terms of the Letter of Intent:

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What’s next for MAN?

New project acquisitions

MAN also said in its recent quarterly that it was reviewing new project opportunities as well as pursuing “organic project generation initiatives”.

With lithium currently unloved, it will be interesting to see what comes from this.

(Source)