ASX-listed Birimian Limited has signed a strategic Memorandum of Understanding (MoU) with multi-billion dollar Chinese company Tongdow Group concerning the Bougouni Lithium Project in southern Mali. Tongdow has high tech logistics and commodity trading operations.
The MoU provides scope for a range of mutually beneficial transactions including offtake, mine development and partnering with Tongdow to achieve spot market pricing of BGS’s lithium products.
Birimian’s managing director Kevin Joyce said, “Securing an MoU with a group of the size and calibre of Tongdow validates the global significance of our high-grade, bulk tonnage Bougouni project.
“This gives Birimian the potential to provide flexibility in the way we operate and distribute our product under both long-term and spot market pricing.
“We are excited by the level of interest from potential partners as we progress defining a path to commercialisation, and look forward to updating the market as additional agreements are secured.”
The MoU follows the announcement of the maiden resource of 15.5 million tonnes @ 1.48% Li2O for 229,000 tonnes of contained Li2O at the Goulamina deposit, within the Bougouni project. This positions the deposit as among the highest grade, hard rock lithium deposits of significant size globally today.
The key terms of the MoU address:
- Leveraging Tongdow’s experience and broad resources to bring the Bougouni Lithium Project into production as soon as possible.
- An understanding that both companies will work to establish commercial terms for off take of spodumene concentrate from the project.
Due to ongoing shortages of lithium carbonate in China and immediate demand for spodumene from Tongdow’s existing clients, Birimian’s interests in progressing the rapid development of the Bougouni project are well aligned with Tongdow.
Tongdow has well established operations in Africa demonstrating their requisite skill set and experience to fulfil its prospective obligations under the MoU.
Furthermore, Tongdow’s prerogative to establish a lithium price index may give Birimian the potential to capture spot prices for lithium in China that historically trade significantly higher than Chinese short/medium term contract prices and the China Lithium Carbonate Import Price.
Tongdow was established in 2011 with their proprietary trading platform launched online in 2012. Tongdow and Shanghai Metal Market are the two largest commodity trading platforms in China, each with similar daily trading values. Tongdow is working to create a global lithium spot price index.