Global Lithium Secures A$7.32M Equity and US$75M Offtake Prepayment from Lopal

Strategic Funding Package Accelerates Manna Lithium Project

Global Lithium Resources (ASX:GL1) has secured a significant funding and partnership deal with Jiangsu Lopal Tech Group, a major battery materials producer listed in Shanghai and Hong Kong. The agreement includes an equity placement raising A$7.32 million, with Lopal acquiring approximately 5% of Global Lithium’s shares at A$0.52875 each, alongside a US$75 million offtake prepayment facility designed to fast-track the development of the Manna Lithium Project in Western Australia.

These arrangements come as the company pushes toward a final investment decision (FID) expected by the end of 2026, marking a pivotal step in cementing Manna’s role in the global lithium supply chain. Managing Director Dr Dianmin Chen described the deal as transformational, highlighting the robust funding and long-term customer commitments underpinning the project’s future.

Long-Term Offtake and Pricing Terms with Lopal

The binding term sheet outlines a 10-year offtake agreement for spodumene concentrate with a targeted lithium oxide content of 5.5%. Lopal will offtake 40% of Manna’s annual production, with Global Lithium aiming to supply at least 70,000 tonnes per annum from the outset. This complements an existing 30% offtake arrangement with Canmax Technologies, leaving the remaining 30% production volume at GL1’s discretion.

Pricing is tied to internationally recognised market price formulas, with a notable floor price of US$1,000 per tonne (CIF basis) guaranteed for the first three years, albeit without an upside price cap. This pricing structure provides a degree of revenue certainty during the early production phase while allowing for market-linked upside thereafter.

Offtake Prepayment to Support Development Costs

The US$75 million prepayment facility will be used exclusively for development expenditure, including the construction and commissioning of the Manna project. The prepayment carries an annual cost of 5%, with a 12-month grace period after first product supply before repayments commence. Repayments will be drawn from product invoices over a maximum four-year term, tying debt servicing directly to project cash flow.

Completion of the prepayment is conditional on the equity placement closing and Global Lithium delivering a positive FID. Notably, these transactions are not subject to approval by the Foreign Investment Review Board, potentially expediting execution.

Divestment of Marble Bar Lithium Assets for A$14.85 Million

In a parallel move, Global Lithium has agreed to sell its Marble Bar Lithium Project tenements and mineral rights to Lopal Tech Perth Pty Ltd for up to A$14.85 million. This divestment includes several exploration tenements in the Pilbara region and aligns with Global Lithium’s strategy to concentrate capital and resources on Manna’s accelerated development.

The sale consideration includes an upfront payment of A$11.85 million and a contingent payment of A$3 million upon granting of a mining lease. The transaction is subject to certain assignments but not FIRB approval, reflecting a streamlined process.

Manna Project’s Growing Momentum and Market Position

The Manna Lithium Project boasts a combined Mineral Resource of 51.6 million tonnes indicated and 18.7 million tonnes inferred at approximately 1% lithium oxide, with Ore Reserves totalling 19.4 million tonnes grading 0.91% Li2O. This resource base, coupled with the recent Definitive Feasibility Study confirming a post-tax NPV of A$472 million and a 14.3-year mine life, underpins the project’s economic viability and strong market positioning.

Global Lithium’s recent funding arrangements follow the company’s robust DFS release and strategic moves such as the Marble Bar gold IPO spin-out, sharpening its focus on lithium development. The equity injection and offtake prepayment from Lopal not only provide vital capital but also validate market demand for Manna’s spodumene concentrate, reinforcing confidence ahead of the FID.

These developments place Global Lithium in a stronger position to navigate the competitive lithium landscape, with the backing of a major Chinese battery materials producer ensuring both financial support and a secured customer base. The company’s next milestones will be closely watched as it advances toward project sanctioning and construction.