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Alliance Mineral makes further amendments to recent deal with Burwill
CATALIST-LISTED Alliance Mineral Assets Ltd has made further amendments to its recently concluded renegotiations with Burwill Commodity.
It said that it has entered into an amended and restated off-take agreement on the terms in the Binding Term Sheet. It has also entered into a letter of variation (LOV) with Burwill to vary the terms of the Binding Term Sheet.
The original agreement stipulates that Alliance Mineral will supply lithium concentrate from the Bald Hill Project in Western Australia over an initial five-year term.
Hong Kong-listed Burwill Commodity is also funding and taking an equity stake in the lithium mining company in Western Australian.
With the new terms, Burwill shall pay A$5 million (S$5.2 million) as subscription consideration for the fourth tranche of subscription shares by Nov 7. Alliance Mineral will waive its right to retain the sum of A$4.375 million paid by Burwill as the second prepayment for lithium concentrate under the off-take agreement if it receives the A$5 million by Nov 7. Burwill shall also pay A$4.8 million by granting the loan on or before Dec 31.
Alliance Mineral may no longer deliver lithium concentrate of a grade lower than 5.5 per cent to Burwill in the event of a delay of the first shipment. In such an event, the agreed price adjustments in the off-take agreement shall apply instead.