AMN - NAMIBIA: Desert Lion in lithium offtake deal

Lithium developer Desert Lion Energy has entered into a non-binding offtake agreement with BASF SE. This would enable BASF to purchase lithium hydroxide from a planned Desert Lion Energy production facility in Namibia.

The agreement is valid through to December 31, 2019, during which time both BASF and Desert Lion Energy shall work towards completion of a definitive offtake agreement. To support the production of lithium hydroxide, Desert Lion Energy will update the November 2018 preliminary economic study to a pre-feasibility study (PFS), including the production of up to 10,000 tonnes per year of lithium hydroxide.

The PFS is expected to be completed by Q4 2019.

Desert Lion Energy's chief executive officer Tim Johnston said: “This offtake agreement represents another major milestone for the company. We are very pleased to be able to align ourselves with BASF for the supply of lithium chemicals to the battery industry.”

Desert Lion Energy is an emerging lithium development company focused on building Namibia’s first large-scale lithium mine about 210km from the nation’s capital of Windhoek and 220km from the Port of Walvis Bay.

The Rubicon and Helikon mines are within a 501sqkm prospective land package. The project site is accessible year-round by road and has access to power, water, rail, port, airport and communication infrastructure.

www.desertlionenergy.com