Ann: Binding Lithium Offtake Agreement Executed with BMW, page-144

Actually, I didn't want to report here any more, but since rumours are surfacing again that there is a mountainbike behind every critical contribution/user, I want to comment briefly.

1)Mountainbike is still Mountainbike and has no reason to hide behind another name.

2) I don't want to comment on the BMW deal, but I'll post a good link from a German forum that should not be ignored.

P:S I don't know the user and have nothing to do with him, but I am of the opinion that one should not run through the world with blinkers on.

I'll sign off after this post and won't be posting here again in the near future.
Have a Merry Christmas and a Happy New Year!

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https://www.wallstreet-online.de/diskussion/1240812-1-10/european-lithium-re-start-resource-mine-herzen-europas#neuster_beitrag

To bring the whole thing back to a realistic fact, I would recommend everyone to read the Ann carefully.

The significance is nil and fits in seamlessly with past Ann's.

To the details:

Pricing: will be based on fast market spot prices for lithium hydroxide with a discount applied.

This means nothing else than that BMW will get the Li (Hdroxide, by the way!) at a discount to the value at the time.

Of course, it does not say how high this discount is. Nor does anyone know how high the LiOH price will be. There is also the great unknown of how high the mining costs will be.

Quantity: approximately 50,000 metric tonnes of battery grade lithium hydroxide, commencing in the
first year with 5,000 metric tonnes and 9,000 metric tonnes each year thereafter.

Here, the "possible" actual mining quantities of EL should be taken into account.

Commencement: supply of lithium hydroxide product expected to begin in 2026 and continue for 6

years until 2031, at which time the Offtake Agreement can be extended for 3 years.

2026 is already a task that seems more than unrealistic. Consider all the permitting procedures, EIA, financing, mine entrance, agreement with the "neighbours", disruptive factors such as project opponents, environmental protection, etc. Many points that have to be clarified and that in 3 years - how is that supposed to work?

Prepayment: BMW to make an advance payment of US$15 million to ECM to be repaid through equal

set offs against LiOH delivered to BMW.

Up to now it has always sounded as if EL was getting the money as a gift from BMW, as an agreement for exclusivity or something similar (maybe just my feeling).

Here it sounds quite different. EL first has to deliver for 15mio LiOH before they even see any money in 2026 (or later). The 15 million advance will certainly no longer exist in 2026. Of course, one can assume that a discount (rebate) will also come into play here as agreed. And what happens if nothing is reduced in 2026? Penalty payment as usual in the automotive industry, or lawsuit for breach of contract or whatever? You can't read any of this out of the Ann.

Conditions: Successful start of commercial production and full product qualification and

certification.

Whatever that means is up to each individual to interpret.

Whatever. In any case, I wish every single investor here every success and good luck (you will need it) so that everything goes through quickly and painlessly.

ps.:

I'm already curious when, after endless postponements and promises, the DFS may come and how it will turn out.