Mineral exploration and Development Company Montero Mining and Exploration Ltd has signed a non-binding Memorandum of Understanding with the Jiang Xi Yun Lithium Materials Company Limited of China for joint cooperation and development of lithium production in Africa.
Under the agreement Jiang Xi Yun Lithium will a sign long term off-take agreement with Montero with Jiang Xi Yun Lithium providing Montero with beneficiation technology and financing support. Montero will also supply Jiang Xi Yun Lithium with long term lithium production from Africa while also having the opportunity of investing in Jiang Xi Yun Lithium upstream beneficiation plant, lithium carbonate and lithium hydroxide facilities in China.
Montero Mining and Exploration’s President and CEO, Tony Harwood said: “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 currently has 3 lithium exploration and development projects in Namibia. The current exploration programs are 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 currently has an annual production 20,000 tonnes of lithium carbonate and is targeting 40,000 tonnes per year by 2020. 23% of the company is held by Guangzhou Tinci Materials Technology, a Chinese battery manufacturing company.
The MOU between Montero and Jiang Xi Yun Lithium is non-binding and involves ongoing discussions and technical investigations by an expert Montero and Jiang Xi Yun team.