- Binding offer received for the supply of minimum
250,000 dry metric tonnes of spodumene concentrate over the course
of 5 years.
- Discussions continue with additional feedstock partners with
further agreements expected in due course.
TORONTO, Dec. 4, 2023
/CNW/ - Rock Tech Lithium Inc. (TSXV: RCK) (OTCQX:
RCKTF) (FWB: RJIB) (WKN: A1XF0V) (the "Company" or "Rock
Tech") is pleased to announce that it has received a binding
feedstock supply offer (the "Offer") from Castelburg Industrie GmbH
("Castelburg"). Castelburg, a renowned supplier in the automotive
industry commits to supply a minimum of 250,000 dry metric tonnes
of spodumene concentrate feedstock for the Company's conversion
facility in Guben, Germany over an
initial five-year term of the envisaged agreement starting in
2024.
The execution of the binding supply agreement based on the terms
of the Offer is subject to a positive result of ongoing due
diligence. Under the supply agreement Rock Tech will annually
source up to 60,000 dry metric tonnes from Castelburg's source in
Salta, Argentina, starting in H2
2024. The price of the spodumene concentrate is based on a discount
to market prices and will be adjusted for the actual Li2O content.
The supply agreement further provides for a potential increase of
volumes and extension of the initial term subject to mutual
agreement by the contract parties.
Dirk Harbecke, Rock Tech's
Chairman and CEO comments, "This is an important milestone for Rock
Tech and the advancement of our Guben project, as independent
3rd party feedstock is a key step to finalize the
financing for our German converter. Castelburg is another strong
European industry partner backs us, offering its relationships in
South America to support our
feedstock sourcing strategy."
The Guben converter will be Germany's first spodumene concentrate to
lithium hydroxide refinery with an annual name plate capacity of
24,000 tonnes battery-grade lithium hydroxide. The receipt of the
full permit to build and operate the plant is expected for early
2024. The current market outlook for Europe predicts that Lithium conversion
capacity will be the major bottleneck in building a sustainable and
resilient battery supply chain. Rock Tech's Guben converter will
hence be vital for the European battery industry and supply lithium
chemicals for approximately 500,000 electric vehicles.
The execution of the supply agreement, including all logistics
handling and financing will be facilitated by RTT Lithium SA, a
50%/50% joint venture established by Rock Tech and Transamine SA.
RTT is also executing the due diligence, the positive finalization
of which is condition precedent for the execution of a supply
agreement.
ABOUT ROCK TECH
Rock Tech is a cleantech company with operations in Canada and Germany on a mission to produce lithium
hydroxide for electric vehicle batteries. The Company plans to
build lithium converters at the door-step of its customers, to
guarantee supply-chain transparency and just-in-time delivery,
beginning with the Company's proposed lithium hydroxide merchant
converter and refinery facility in Guben, Germany. The second Lithium converter will be
built in Ontario, Canada. To close
the most pressing gap in the clean mobility story, Rock Tech has
gathered one of the strongest teams in the industry. The Company
has adopted strict environmental, social and governance standards
and is developing a proprietary refining process aimed at further
increasing efficiency and sustainability. Rock Tech plans to source
raw material from its wholly-owned Georgia Lake spodumene project
located in the Thunder Bay Mining District of Ontario, Canada, as well as procuring it from
other responsibly producing mines. In the years to come, the
Company expects to also source raw material from discarded
batteries. Rock Tech's goal: to create a closed-loop lithium
production system. www.rocktechlithium.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
CAUTIONARY NOTE CONCERNING
FORWARD-LOOKING INFORMATION
Certain statements contained in this news release constitute
"forward-looking information" under applicable securities laws and
are referred to herein as "forward-looking statements". All
statements, other than statements of historical fact, which address
events, results, outcomes or developments that the Company expects
to occur are forward-looking statements. When used in this news
release, words such as "expects", "anticipates", "plans",
"predicts", "believes", "estimates", "intends", "targets",
"projects", "forecasts", "may", "will", "should", "would", "could"
or negative versions thereof and other similar expressions are
intended to identify forward-looking statements. In particular,
this press release contains forward-looking information pertaining
to the outcome of amount, quality of products from Castelburg's
and/or their partner's mining operations; regulatory
decisions and outcomes; anticipated construction and its costs,
schedules and completion dates; access to capital markets and other
sources of financing; the supply and demand for, deliveries of, and
the level and volatility of prices of, intermediate and final
Lithium products; future exchange and interest rates; general
business and economic conditions; the costs and results of
development, exploration and operating activities; Rock Tech's
ability to procure supplies and other equipment necessary for its
business; and the accuracy and reliability of technical data,
forecasts, estimates and studies; Rock Tech's opinions, beliefs and
expectations regarding the outcome of the Offer and the supply
agreement, the Company's own business strategy, development and
exploration opportunities and projects, and plans and objectives of
management for the Company's operations and properties; and
Castelburg's ability to procure supplies , their accuracy and
reliability of technical data, forecasts, estimates and studies and
RTT Lithium SA's ability to handle logistics and financing .
Forward-looking statements by their nature are based on
assumptions and involve known and unknown risks, uncertainties and
other factors which may cause the actual results to differ
materially from the forward-looking statements. There may also be
other factors that cause actual results to differ materially from
the forward-looking statements, including the risks, uncertainties
and other factors discussed in the Company's most recent
management's discussion and analysis and annual information form
filed with the applicable securities regulators, or known and
unknown risks and uncertainties that may the Company's ability to
access additional funding required to invest in available
opportunities and projects (including the Guben Converter Project
and the Georgia Lake Project).
No assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, and the
Company cautions the reader not to place undue reliance upon any
such forward-looking statements. The Company does not intend, nor
does it assume any obligation to update or revise any of the
forward-looking statements, whether as a result of new information,
changes in assumptions, future events or otherwise, except to the
extent required by applicable law.
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SOURCE Rock Tech Lithium Inc.