- Recharge Resources (RR) completes a Letter of Intent (LOI) with Richlink Capital Pty for the supply of a minimum of 10,000 up to 20,000 tonnes annually of lithium chloride or lithium carbonate to two of their clients in China
- The supply transaction will come from the Pocitos 1 Lithium Brine Project in Salta, Argentina
- After Recharge’s drill program is complete, the company will immediately embark on a resource and reserve statement and then complete a feasibility study with EkoSolve
- Recharge Resources (RR) is a Canadian mineral exploration company
- Recharge Resources (RR) is up today, trading at C$0.70 at 3:16 pm ET
Recharge Resources (RR) has signed a Letter of Intent (LOI) with Richlink Capital Pty.
Under the terms of the LOI, Recharge will supply a minimum of 10,000 up to 20,000 tonnes annually of lithium chloride or lithium carbonate to two of Richlink’s clients in China. The supply transaction will come from the Pocitos 1 Lithium Brine Project in Salta, Argentina, where the company is about to embark on a production-ready well-drill program.
Richlink and its clients will purchase a minimum of 10,000 to 20,000 tonnes of lithium chloride salt once the Pocitos 1 Ekosolve facility is fully commissioned. The lithium chloride will be sold from the port in Antofagasta, Chile.
After Recharge’s drill program is complete, the company will immediately embark on a resource and reserve statement and then complete a feasibility study with EkoSolve.
Once the product is produced, it will be packed in 25kg bags and sent via container truck to Antofagasta, Chile and secured in the bond store prior to shipment.
Recharge’s trading terms are a revolving letter of credit. The delivery can be either free-on-board or cost, insurance and freight basis. The price will be negotiated subject to market price. The current price is US$70,293 per tonne as of September 23.
Richlink will then be given the opportunity to become strategic investors via a combination of debt and a private placement at the time of plant financing, with the proceeds directed toward building an Ekosolve plant that can produce lithium chloride and lithium carbonate.
The obligations of the parties will be subject to conditions such as the board of directors of each party approving the proposed supply transaction, the parties’ execution of the definitive agreement, and no material adverse change in the operations, prospects, conditions or assets of either party.
Certain development milestones for Recharge are worth noting. The company intends to drill a production diameter exploration well this month. The two wells drilled by AIS in 2018 generated significant volumes of brine with lithium assays in excess of 125ppm. An additional exploration hole will be done in November to publish a mineral resource at the Pocitos 1 concession. Recharge will also commence an environmental baseline study and start preparing for a mining permit.
Recharge aims to complete a capital raise and start construction of the facility by June 2023.
CEO and director David Greenway says:
“Confirming offtake interests and strategic financing for an Ekosolve production facility are top priorities at the advanced stage Pocitos 1 Lithium Brine Project. We look forward to continuing the path forward to the benefit of all stakeholders, including Richlink, its clients, the community of Pocitos, as well as stakeholders of Recharge Resources and our growing team in Australia, Argentina, the USA and Canada.”
Richlink Capital Group is a diversified financial service and investment management group focused on creating compelling investment solutions in a wide range of industry sectors. Richlink is headquartered in Beijing, China and active overseas with branches in Australia.
Previous exploration and development teams at the Pocitos Project have spent over US$1.5 million exploring the project, including surface sampling, trenching, TEM geophysics and drilling two 400m holes that had outstanding brine flow results.
Lithium values of up to 125 ppm from laboratory analysis were recorded by A.I.S. Resources Ltd during the project’s first drill campaign in May 2018.
Recharge Resources (RR) is a Canadian mineral exploration company focused on exploring and developing the production of high-value battery metals to create green, renewable energy to meet the demands of the advancing electric vehicle and fuel cell vehicle market.
Recharge Resources (RR) is up today, trading at C$0.70 at 3:16 pm ET.