CENTURY LITHIUM AND ORICA SPECIALTY MINING CHEMICALS SIGN MOU FOR SODIUM HYDROXIDE FROM ANGEL ISLAND
Rhea-AI Summary
Century Lithium has signed a non-binding MOU with Orica Specialty Mining Chemicals on January 16, 2025, for a potential multiyear offtake agreement of sodium hydroxide from the Angel Island project in Nevada. The agreement outlines a 5-year initial term with a right of first offer for an additional 5 years.
The collaboration aims to strengthen Nevada's manufacturing and mining sectors by establishing a local supply chain for membrane-grade sodium hydroxide. Century Lithium's patent-pending process for lithium extraction from claystone produces surplus sodium hydroxide as a byproduct, which is expected to contribute to low operating costs for the project's primary product, lithium carbonate.
The agreement represents the first of its kind for the Angel Island project and involves a significant portion of the surplus sodium hydroxide expected during early operations. Pricing terms will be determined in the definitive agreement.
Positive
- First major offtake agreement for Angel Island project's sodium hydroxide byproduct
- Potential revenue stream from surplus sodium hydroxide expected to lower operating costs
- Strategic partnership with major US manufacturer strengthens local supply chain
- Initial 5-year term with possible 5-year extension provides long-term revenue visibility
Negative
- MOU is non-binding and subject to definitive agreement
- Pricing terms not yet determined
News Market Reaction
On the day this news was published, OCLDY gained 1.61%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"The non-binding MOU with Orica marks a key milestone for Angel Island," said Century Lithium President and CEO, Bill Willoughby. "The MOU outlines the first expected agreement of its kind for the project and involves a large portion of the surplus sodium hydroxide anticipated during the early years of operation. We are excited to work with Orica and have their support at this stage of development at Angel Island."
Orica President Specialty Mining Chemicals Andrew Stewart said: "This collaboration signifies our commitment to strengthening and unlocking
Century Lithium patent-pending process for extracting lithium from the claystone at Angel Island combines chloride leaching with direct lithium extraction and uses salt, in the form of solid sodium chloride or saline brine, to make the reagents for leaching and pH control. In addition to lithium, the process produces surplus sodium hydroxide, the sales of which are anticipated to underpin low operating costs for Angel Island's primary product, lithium carbonate.
Highlights of MOU
- Century Lithium to intends to provide Orica membrane-grade sodium hydroxide (NaOH)
- Initial 5-year term, right of first offer for an additional 5 years
- Pricing to be determined by definitive agreement
- Orica – Century Lithium relationship will strengthen the
U.S. supply chain, reducing reliance on imports of NaOH to the westernU.S. and supportingNevada 's mining industry
ABOUT ORICA
Orica (ASX: ORI) is one of the world's leading mining and infrastructure solutions providers. From the production and supply of explosives, blasting systems, specialty mining chemicals and geotechnical monitoring to our cutting-edge digital solutions and comprehensive range of services, we sustainably mobilize the earth's resources.
Operating for more than 150 years, today our 14,000+ global workforce supports customers across surface and underground mines, quarry, construction, and oil and gas operations.
With a sodium cyanide manufacturing plants located in
ABOUT CENTURY LITHIUM CORP.
Century Lithium Corp. is an advanced stage lithium company, focused on developing its wholly-owned Angel Island project in
Angel Island is one of the few advanced lithium projects in development in
Century Lithium trades on both the TSX Venture Exchange under the symbol "LCE" and the OTCQX under the symbol "CYDVF"; and on the Frankfurt Stock Exchange under the symbol "C1Z". To learn more, please visit: centurylithium.com.
ON BEHALF OF CENTURY LITHIUM CORP.
WILLIAM WILLOUGHBY, PhD., PE
President & Chief Executive Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Cautionary Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" and similar expressions suggesting future outcomes or statements regarding an outlook.
Forward-looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, without limitation, statements with respect to the potential development and value of the Project and benefits associated therewith, statements with respect to the expected project economics for the Project, such as estimates of life of mine, lithium prices, production and recoveries, capital and operating costs, IRR, NPV and cash flows, any projections outlined in the Feasibility Study in respect of the Project, the permitting status of the Project and the Company's future development plans.
These and other forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. These risks include those described under the heading "Risk Factors" in the Company's most recent annual information form and its other public filings, copies of which can be under the Company's profile at www.sedarplus.com. The Company expressly disclaims any obligation to update-forward-looking information except as required by applicable law. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place reliance on forward-looking statements or information. Furthermore, Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
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SOURCE Century Lithium Corp.
FAQ
What is the duration of Century Lithium's sodium hydroxide offtake agreement with Orica?
How will the sodium hydroxide offtake agreement affect Century Lithium's operating costs?
What type of sodium hydroxide will Century Lithium supply to Orica?
When was the MOU between Century Lithium and Orica signed?
How does Century Lithium produce sodium hydroxide at Angel Island?
