News: AVZ Shenzhen Chengxin Lithium In Deal To Purchase Spodumene From Australia's AVZ, page-3

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Stock code: 002240 Stock abbreviation: Shengxin Lineng Announcement Number: 2021-022Shenzhen Shengxin Lithium Energy Group Co., Ltd.Announcement on signing the lithium concentrate offtake agreementThe company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosed, and there is no falsityFalse records, misleading statements or major omissions.

1. Overview of the signing of the agreementShenzhen Shengxin Lithium Energy Group Co., Ltd. (hereinafter referred to as the "Company") recently entered into an agreement with AVZ Mining Co., Ltd.The company (hereinafter referred to as "AVZ Mining") signed the "Offtake Agreement" (hereinafter referred to as the "Agreement"),The company intends to purchase spodumene concentrate from AVZ Mining. The first-phase purchase period is 3 years, and the subsequent parties reached an agreement.See can be extended.The signing of this agreement is the company’s daily business activities, and there is no association between the company and AVZ MiningRelationship, does not involve related party transactions. According to the "Guidelines for the Normative Operation of Listed Companies on the Shenzhen Stock Exchange" and the "PublicAccording to relevant provisions such as the Articles of Association, the signing of this agreement does not need to be submitted to the company’s board of directors and shareholders’ meeting for deliberation.

2. Introduction of the counterpartyCompany Name: AVZ Mining Co., Ltd.English name: AVZ Minerals LimitedMain business: engaged in mining industryAddress: Level 2, 8 Colin Street, West Perth, WA 6005, AustraliaThe company does not have an associated relationship with AVZ Mining. In the last fiscal year, the company and AVZ Mining have not issued anyHealth similar business.AVZ Mining has good credit status and good performance capabilities.

3. The main content of the agreement
(1) Buyers and sellersBuyer: Shenzhen Shengxin Lithium Energy Group Co., Ltd.Seller: AVZ Mining Co., Ltd.
(2) The time limit for the performance of the agreementThe first phase of this agreement will be implemented from the date when the seller’s mine is put into production, and the term is 3 years, and the subsequent parties reach an agreementComments can be extended.
(3) Purchase products and quantityThe product purchased by the company from AVZ Mining this time is spodumene concentrate, which will be purchased during each contract year.The volume is 160,000 tons (+/-12.5%).
(4) Purchase priceThe purchase price is the CIF price in U.S. dollars, and the calculation formula refers to the publicly released lithium carbonate and lithium hydroxide products.Product price, and set a minimum price.
(5) Breach of contract and terminationIf the buyer or seller violates the substantive terms of this agreement, including non-payment or non-supply or inability to completeFor the promised annual supply, the buyer or seller has the right to terminate this agreement.Fourth, the impact on listed companiesThe signing of the spodumene concentrate acquisition agreement with AVZ Mining this time is conducive to expanding the company’s superiority of lithium salt products.Supply channels of quality raw materials. The performance of this agreement has no impact on the company’s operating results and performance for the year. It is expected thatIt will have a positive impact on the company’s operating performance in future years, and the company’s main business will not be affected by the performance of this agreement.And form dependence on it. The company will continue to carry out various tasks around resources, scale, quality, and customers to achieve

The company's strategic goals.
Five, risk warningThe first shipment of this agreement will be performed from the date when the seller’s mine is put into operation.There are uncertainties in the performance of the contract and the delivery of the product. The company and AVZ Mining have agreed in this agreementMake clear provisions on breach of contract, disputes, and response measures and attribution of responsibilities in the event of force majeure, but inVarious problems that may arise during the performance of the agreement may still affect the performance of the agreement. Please voteInvestors pay attention to investment risks.
Six, other informationThe subsequent company will perform its information disclosure obligations in a timely manner in accordance with the progress of this agreement in accordance with relevant regulations.Special announcement.Shenzhen Shengxin Lithium Energy Group Co., Ltd.Board of DirectorsMarch 8, 2012