AMN - NAMIBIA: Montero signs Chinese lithium MOU

Montero Mining and Exploration Ltd has signed a non-binding MOU with the Jiang Xi Yun Lithium Materials Company Limited of China for joint cooperation and development of lithium production in Namibia. The MOU may include a long-term offtake agreement.

The cooperation may also include Jiang Xi Yun Lithium providing Montero with beneficiation technology and financing support, and Montero supplying the Chinese company with long-term lithium production.

Montero may also have the opportunity of investing in Jiang Xi Yun Lithium's upstream beneficiation plant, lithium carbonate and lithium hydroxide facilities in China.

Montero Mining and Exploration’s president and CEO Tony Harwood said that this was an exciting development for Montero.

“Jiang Xi Yun Lithium is focused on the supply of battery-grade lithium products to the electric vehicle market in China. Jiang Xi Yun Lithium has already made a significant investment in the development of lithium refining facilities in China and is continuing to expand these with a view to becoming a major supplier of lithium.

"It wishes to supplement its current supply with lithium from Africa which is the focus of our MOU. Jiang Xi is an ideal fit for Montero’s intention of becoming a lithium producer.”

Montero has three lithium exploration and development projects in Namibia with current exploration programs targeting NI 43-101 compliant resources and the exploration of additional lithium targets in Namibia.

Jiang Xi Yun Lithium processes and manufactures lithium carbonate and lithium iron phosphate products for the Chinese battery market. It also offers non-ferrous metal materials, cobalt, nickel, copper, and aluminum recycling, processing and marketing services.

The company has annual production 20,000 tonnes of lithium carbonate and is targeting 40,000 tonnes per year by 2020. Guangzhou Tinci Materials Technology, a Chinese battery manufacturing company, holds 23% of the company.

The MOU between Montero and Jiang Xi Yun Lithium is non-binding and involves ongoing discussions and technical investigations by a team of experts from Montero and Jiang Xi Yun.

Montero has options to acquire the Soris lithium-tantalum-tin project, the UIS lithium-tin tailings project, and EPL6162 in Namibia in order to prove up significant lithium resources.

Montero other assets include the Wigu Hill Rare earth project in Tanzania and phosphate projects in South Africa.

www.monteromining.com