Tantalex Lithium Resources, a Canada-based exploration and development stage mining company, received and executed a term sheet from Glencore International AG for a marketing offtake agreement for the lithium to be produced from its Manono Lithium Tailings Project in the Democratic Republic of Congo (DRC).

Tantalex is engaged in the acquisition, exploration, development and distribution of lithium, tin, tantalum and other high-tech mineral properties in Africa. It is currently focused on developing its lithium assets in the prolific Manono area in the DRC: The Manono Lithium Tailings Project and the Pegmatite Corridor Exploration Program.

The Manono tailings are a legacy of historical tin mining in the area. The project covers 105 million mt over 11 dumps, containing Lithium, tin and tantalum.

The term sheet includes the following key commercial terms:

• First Tranche of secured convertible financing facility of US$2 million upon execution of the marketing offtake agreement (MOA);

• Second Tranche of US$3 million upon Glencore’s satisfactory review of the Preliminary Economic Assessment (PEA); and

• Third Tranche financing of 1/3 of the total CAPEX required for the Manono Lithium Tailings Project subject to conditions precedent.

• Commitment Fee of 1.5% flat calculated on the total initial prepayment amount, to be deducted from the prepayment on each disbursement.

The transaction is subject to various conditions precedent (CPs), including the execution of definitive agreements and completion of outstanding due diligence to Glencore’s satisfaction.

We are delighted to have the support of Glencore for the upcoming Manono Lithium Tailings Project. Glencore already has very well-established mining operations in the DRC with important cobalt and copper assets. Their experience and expertise in country will be crucial for developing further our activities in the DRC. The CAPEX financing commitment is a significant milestone in the de-risking of the project and achieving our goal to become the first lithium producer in the DRC.

—Eric Allard, Tantalex Lithium CEO

A Maiden Mineral Resource Estimate was initially published in January 2023 for the Manono Lithium Tailings Project with the following highlights:

• 5.46 million tonnes at 0.72% LiO in the Measured and Indicated category.

• 6.63 million tonnes in total Inferred Mineral Resources at a grade of 0.49% LiO.

• Lithium contained in spodumene and amenable for production of 6% LiO Spodumene Concentrate (SC6).