Ann: Obeikan Group executes Shareholder Agreement, page-28

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European Lithium makes progress on hydroxide plant as Saudi joint venture partner inks agreementPublished: 10:56 04 Jul 2024 AESTWritten by: Susanna NelsonAbout this contentViewEuropean Lithium LtdASX:EUROTCQB:EULIFEuropean Lithium Ltd (ASX:EUR, OTCQB:EULIF) and the Saudi-based Obeikan Group for Investment Company (Obeikan Group) are on track to collaborate on the development and operation of a new lithium hydroxide processing plant.New entity to be formedThe Obeikan Group has now signed the shareholders agreement, paving the way for the incorporation of the joint venture company, Arabian New Energy.Incorporation will proceed following successful registration and approval by Saudi Arabia's regulatory authorities.The joint venture, structured as a 50-50 partnership, will construct a large-scale lithium hydroxide processing plant in the Kingdom of Saudi Arabia to process spodumene concentrate produced from the Wolfsberg Lithium Project located in Austria.Under the shareholder agreement, Arabian New Energy will have the exclusive right to purchase spodumene mined from Wolfsberg's Zone 1.The facility will be developed to meet initial capacity and product specifications as per European Lithium’s binding long-term supply agreement with BMW, announced in 2022.Wolfsberg Project Zone 1 will sell the lithium spodumene concentrate to the joint venture company at a reduced rate, with a floor and ceiling price subject to final agreement.A development committee will be established for joint collaboration on all key decisions related to the plant's development.Once Critical Metals Corp (CRML) Ltd, in which EUR is the majority shareholder, signs the deeds, the terms of the collaboration will become binding on all parties."Huge milestone for Wolfsberg"Executive chair Tony Sage said: “This is another huge milestone for the Wolfsberg project following on from the recent $US15 million commitment made by BMW.“We now have two very dedicated partners to ensure we fulfil our ambition of becoming the first European producers of both spodumene and hydroxide. Now after these key milestones have been achieved the next steps become a lot easier.“Over the next two quarters, we expect to finalise the updated DFS on the now separated projects and secure the necessary funding to commence construction.The board of the newly formed Arabian New Energy will appoint a leading ECPM to oversee the construction of the hydroxide plant. The funding for the project will be organised from within Saudi Arabia.”Obeikan Investment Group CEO Abdallah Obeikan said: “We are pleased to have reached this agreement with European Lithium. We are convinced that our partnership will be beneficial for all stakeholders.“This partnership will combine solid technical expertise of European Lithium and its affiliates with the industrial knowledge of Obeikan and the strength of Saudi Arabian financial markets.“It is a strategic global collaboration to achieve the goals of Vision 2030 and to advance the development of the new industry in the Kingdom of Saudi Arabia.”