European Lithium Limited has issued an update on the progress of its plans to establish and operate a hydroxide plant in Saudi Arabia.
European Lithium has signed a non-binding memorandum of understanding with Obeikan Investments Group and was recently advised that Obeikan’s team has completed their due diligence processes with a global strategic management consulting firm.
As part of the agreement, the companies agreed to negotiate suitable commercial terms to enter a 50:50 joint venture partnership for the co-development of a hydroxide plant in Saudi Arabia for the Wolfsberg Lithium Project in Austria.
With due diligence completed, the parties expect to execute a binding agreement before 31 May.
Executive Chairman Tony Sage said the hydroxide plant in Saudi Arabia would reduce energy costs by over 80 per cent, provide access to a much lower corporate tax rate and provide much more attractive financing options.
“This will create enormous savings in operating costs and lower capital expenditures for the Wolfsberg project, which will greatly impact the just completed definitive feasibility study’s net present value and internal rate of return calculations,” he added.
