After a rough start to its trading life, shares of Namibian lithium developer and emerging lithium concentrate producer Desert Lion Energy Inc. (TSX-Venture:DLI) popped on news that the company announced it has delivered the first shipment of lithium concentrate product to the port of Walvis Bay in Namibia in accordance with the terms of its offtake agreement with Chinese lepidolite converter and offtake partner Jiangxi Jinhui Lithium Co. Limited.
The first shipment is expected to be approximately 30,000 tonnes (t) of lithium concentrate material, which will generate gross revenues of approximately $3.8 million for the Company.
Under the terms of the Offtake Agreement, Jinhui is required to purchase all lithium concentrate product from Phase 1 of the Company's production plan, which the Company estimates to be approximately 150,000t - 160,000t of lithium concentrate for the 12- to 18-month period.
"The delivery of the first shipment of lithium concentrate represents a significant milestone for Desert Lion, which demonstrates the production chain is operational from reclaiming, sorting and processing all the way through to delivery of product to our offtake partner at the port of Walvis Bay," commented Tim Johnston, President and Chief Executive Officer of Desert Lion.
Shares of DLI are off to a strong start on the news, with the stock up 4.20% at $1.24 in early-afternoon trading.
