Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) announced that it has signed a non-binding memorandum of understanding (MOU) with Orica Specialty Mining Chemicals.
The MOU outlines the intent of the two companies to establish a multiyear offtake agreement, with Orica purchasing sodium hydroxide (NaOH) from Century Lithium’s Angel Island project, located near Silver Peak, Nevada.
Century Lithium’s patent-pending extraction process at Angel Island uses chloride leaching combined with direct lithium extraction.
This method involves the use of salt, either in the form of solid sodium chloride or saline brine, to produce reagents for leaching and pH control.
In addition to lithium, the process generates surplus sodium hydroxide, which is expected to help reduce operating costs for lithium carbonate production at the site.
The MOU specifies an initial five-year term for the agreement, with a right of first offer for an additional five years. Pricing will be determined by a definitive agreement.
Century Lithium CEO Bill Willoughby described the non-binding MOU with Orica as a key milestone for Angel Island.
"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,” Willoughby said.
“We are excited to work with Orica and have their support at this stage of development at Angel Island."
Andrew Stewart, Orica president of Specialty Mining Chemicals, added: “By securing a reliable source of sodium hydroxide from Angel Island, we strengthen the local supply chain and reinforce our dedication to innovative US manufacturing solutions for our customers in North America."