CATL To Subscribe for C$8.5M Of Neo Lithium Shares
Neo Lithium Corp. (TSXV:NLC) has entered into an equity subscription agreement with a subsidiary of leading Chinese battery manufacturer Contemporary Amperex Technology (CATL).
CATL specialises in the manufacture of lithium-ion batteries for electric vehicles and energy storage systems, and battery management systems.
Under the terms of the Agreement, CATL will subscribe for a total of C$8,582,702 of Neo Lithium shares.
Chief Executive Officer and Director, Waldo Perez, said this investment will strengthen Neo Lithium’s financial position and financing strategy and get us one step closer to the development and construction of the Company’s wholly owned Tres Quebradas Lithium Project (3Q Project) in Catamarca Province, Argentina.
The company completed a positive Pre-Feasibility Study in May 2019 and going forward, the Company together with the technical assistance of CATL, will finish the Definitive Feasibility Study (DFS) in order to define the precise financing requirements for the 3Q Project. The DFS will evaluate the economic feasibility for a project with a nameplate production capacity of approximately 20,000 metric tons of battery quality lithium carbonate, with expansion capacity up to 40,000 metric tons per year of battery quality lithium carbonate.
“We are delighted to receive an endorsement from a globally recognised, leading industry player such as CATL as we continue to further advance our strategic objectives at the 3Q Project,” Mr Perez said.
“As we have said many times, we believe it’s extremely important to have a strategic partner with unique knowledge of the expected end market demand, before concluding the DFS. We are confident that CATL will help us define the battery grade quality and certification of the final product to highest levels.”
Constantine Karayannopoulos, Chairman of Neo Lithium, said that over the past few months, the Neo Lithoim has provided several corporate updates regarding the process to select a strategic and financing partner. Since then and recognising that over the past months the pandemic has affected Project Financing activities globally in the lithium industry and others, the company has decided to move forward with the DFS with the assistance of a global industry leader, which will help us minimise the technical risks and adapt the project to meet the best industry standards in terms of quality and specifications.
“We are thrilled to welcome CATL as a strategic investor in Neo Lithium and to have them join our share register alongside many of our other long-term supportive shareholders. The investment by CATL, which comes at a premium to market price, is a positive sign of support for the 3Q Project and our management team. CATL is a large and well respected leader in the battery space with extensive experience, which bodes extremely well as our team continues to forge ahead.”