Battery Metals

TSXV:CRE

Critical Elements Corporation (TSXV:CRE) announced today the signature of a strategic collaboration agreement with a Leading Chemical Company, that includes take or pay off-take for all products produced from the Rose Lithium-Tantalum project. The feasibility study will be completed in collaboration with the Strategic technical and commercial Partner. Finally, should the feasibility study support the technical feasibility …

Critical Elements Corporation (TSXV:CRE) announced today the signature of a strategic collaboration agreement with a Leading Chemical Company, that includes take or pay off-take for all products produced from the Rose Lithium-Tantalum project. The feasibility study will be completed in collaboration with the Strategic technical and commercial Partner.
Finally, should the feasibility study support the technical feasibility and economic viability of the project the Strategic Partner will also have the option of participating in the project by providing equity in the project financing for an interest of up to 25%.
The Strategic Partner has more than 50 years of operation history, operating worldwide and is a financially strong company with specific knowledge that guarantees access to the major markets worldwide with an entry to major customers.
As quoted in the press release:

The material terms of the Agreement are as follows:
Take or pay off-take Agreement
Subject to the take or pay off-take agreement to be executed by the parties (the “Take or pay off-take Agreement”), the Strategic Partner will have the sole and exclusive right to purchase all of the produced products including spodumene concentrate (technical and chemical grade), all lithium chemicals (carbonate, hydroxide, chloride), mica and tantalum concentrate (collectively, the “Products”).
The parties will use their commercially reasonable efforts to finalize and execute the Take or pay off-take Agreement by no later than 60 days following the completion of the feasibility study. Under the Agreement, and subject to certain conditions, notably the exercise of the Financing Option (as defined below), the Strategic Partner has also been granted a right of first refusal to become the exclusive off-taker for all Products on any of the future projects of Critical Elements (or its affiliates).
Feasibility Study
The Strategic Partner has agreed to collaborate with, assist and provide technical support to Critical Elements for the preparation and completion of the feasibility study. The Strategic Partner has further agreed to provide logistical and sales support to Critical Elements in relation to the distribution and sale of all future mineral products to be produced on the Project (the “Mine”).
Project Financing
As consideration for the Strategic Partner’s covenants and undertakings under the Agreement, Critical Elements has agreed to grant the Strategic Partner an option to acquire an ownership interest of up to 25% in the project by committing to pay for a portion of the mine construction costs (the “Financing Option”). The Strategic Partner may exercise the Financing Option within a period of 60 days after having received written notice from Critical Elements to the effect that it has arranged financing for mine construction. The Financing Option is subject to certain conditions, including the execution of the Take or pay off-take Agreement.

Critical Elements Corporation President and CEO, Jean-Sébastien Lavallée, stated:

This is truly a game changing agreement for the company, the Company now have a strong partner to complete its feasibility study and advance the Rose project. With a quality asset like the Rose project and our joint expertise, we will be positioned to maximize the project’s potential.
With the diversified Rose project products and its long-term 17-year mine life, we will be positioned to produce ceramic-grade lithium concentrate as well as meet the specifications for the fast growing lithium battery market. The tantalum and mica concentrate also gives additional by-product diversification. This makes the Rose project unique among all the lithium assets.

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