For Immediate Release
Burwill Enters into Exclusive Lithium Concentrate Offtake Agreements with Operators of Tantalum and Lithium Resources in Australia
Expand Lithium Resources Business to Seize New Opportunities
(Hong Kong, 20 April 2017) Burwill Holdings Limited ("Burwill" or the "Group") (SEHK: 24) is pleased to announce that a wholly-owned subsidiary of the Group, Burwill Commodity Limited ("BCL") entered into exclusive lithium concentrate offtake agreements with Alliance Mineral Assets Limited ("AMAL"), a wholly-owned subsidiary of Tawana Resources NL ("Tawana"), and Lithco No. 2 Pty Ltd ("Lithco") respectively. Pursuant to which, BCL will be granted with exclusive selling rights to the lithium concentrate flowing from the Bald Hill Project in Western Australia for a five year term and pre-emptive rights to the same for subsequent five years.
According to the agreements, starting from February 2018, BCL shall purchase an aggregate of at least 200,000 dry metric tonnes of high-grade lithium concentrate at a fixed price in the first two years, which worth approximately USD200 million. BCL will advance by installments of AUD25 million.
Bald Hill is renowned for its high grade spodumene and tantalum belt. Its excellent infrastructure, including transportation, electricity, water and transformed concentrator also guarantee the quality of operation and production. AMAL and Tawana will increase and improve the exploration of tantalum and lithium resources and target to start off commissioning by the end of 2017 and shipping lithium concentrate with grade 6% in the first quarter of 2018. Bald Hill is a rare sizable mine for lithium in Australia.
Lithium concentrate is raw material for lithium carbonate processing. Lithium carbonate is widely used in mobile phones, digital products, military, as well as industrial and large capacity domestic energy storage systems. High-power lithium-ion batteries are the core material applied in hybrid electric vehicles and pure-electric vehicles. With the usage and application of lithium has become more prevalent in recent years, its demand also continues to increase synchronously. Global lithium resources are highly scarce with its main reserves and production capacity being monopolized by a few multinational companies in the United States, Australia and Latin America. In China, despite a certain amount of reserves, mass-production is not likely to implement as the technology of extracting lithium from brine has reached a bottleneck. Therefore, China has become totally dependent on imports of lithium ore in the long run.
Mr. Chan Shing, Chairman of Burwill, stated: "The Group is optimistic about the prospects for global lithium resources. We will uninterruptedly invest in the development of lithium concentrate procurement, lithium carbonate processing and sales. Meanwhile, we also plan to invest in a lithium carbonate plant with an annual production of 10,000 tons in China. The lithium related business is expected to generate new sources of income for the Group."
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About Burwill Holdings Limited (SEHK: 24)
Burwill Holdings Limited mainly engages in international metal trading as well as mineral resources investment, exploration and development. The Group listed shares on the main board of The Stock Exchange of Hong Kong Limited in 1983 and have been engaged in international steel trading for over 60 years and play an active role in the international steel trading market.
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20/04/2017 Dissemination of a Financial Press Release, transmitted by EQS Group.
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