Lithium Energy Products Signs Off-Take Mou For Lithium Compounds
TSX VENTURE: LEP
Vancouver, British Columbia, Canada / TheNewswire / January 17, 2017 - Lithium Energy Products Inc. ("Lithium Energy Products" or "LEP" or the "Company") (TSX-V: LEP) (FRANKFURT: N8I) today announced that it has signed a Memorandum of Understanding "MOU" for lithium off-take with Sichuan Zhiyuan Lithium Industries "SZLI", a subsidiary of Shehong Zhiyuan Industry Co. SZLI is a Sichuan based cathode manufacturer.
The MOU calls for 200 tonnes per month of industrial grade lithium chloride and lithium carbonate and 1500 tonnes per month of industrial grade lithium chloride brine.
Purchase price will be based on prevailing market prices at the time the desired products are sold. Market price will be determined from an average of the previous 3 months prices published by LME, Metal Bulletin and Platts.
The MOU establishes the basic terms to be used in a future off-take agreement between LEP and SZLI. The terms are not comprehensive at this time and may be changed as a binding agreement is negotiated over the coming months.
Basil Botha, Chairman and President of LEP said; "This off take agreement is as a direct result of our Corporate Development team's recent visit to China and our years of building relationships in China. This is an important first step for LEP in building the market side of our business. The buyer understands that we are early stage and that no production decision has been taken and may not be achieved for a few years, however we are also in a position to seek off-take agreements with other producers, so we intend to pursue producers and near term producers in order to begin to supply our customers in China, before we reach production at any of our own projects.
About Lithium Energy Products Ltd.
Lithium Energy Products has 3 highly prospective lithium properties in Nevada and Arizona.