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Lepidico - Binding Offtake Signed with Traxys

• Binding offtake agreement signed with Traxys for 100% of lithium hydroxide (5,000tpa) production volume from Phase 1
• Flexible agreement for Traxys to act as principal, and provide sales-marketing, logistics and trade finance services for a term of 7 years with an option to extend
• Agreement includes Traxys acting as agent for caesium sulphate solution (400tpa), with scope to be expanded to other products by mutual agreement
• Majority of volumes expected to be sold on a back-to-back contract basis with the balance linked to a market price index. Traxys’ net commission is within accepted industry standards
• Traxys is a multinational marketer, distributor and trader of base metals & concentrates, chemicals and industrial minerals, rare earths, uranium, materials for steel mills and foundries, and minor and alloying metals.
• Traxys is established in global lithium markets with existing customer relationships relevant to Lepidico’s product suite

Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to announce that it has entered into a binding offtake agreement for sales-marketing, logistics and trade finance with Traxys Europe S.A. (“Traxys”) for 100% of the production of lithium hydroxide (5,000tpa) from the Company’s planned Phase 1 Project. In addition, Traxys will act as agent for 100% of the production of caesium sulfate solution (400tpa) from the Chemical Plant.

The agreement structure is for Traxys to act as principal to purchase and assume title and risk for delivery of lithium hydroxide and on-sell the products to end users. Traxys will manage the logistics of finished products, provide credit terms to end customers and a trade finance facility to Lepidico. The agreement can be expanded to other products manufactured by Lepidico by mutual agreement.

For more information, download the attached PDF.

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