LAGOS, NIGERIA / ACCESSWIRE / September 26, 2023 / Continental Lithium Limited ("Continental Lithium," "Continental," or the "Company"), the first emerging lithium mining and trading company out of Nigeria focused on the exploration, mining, trading and exporting of solid mineral ores, including lithium (spodumene), tin, columbite-tantalite, zircon sand (brown) and monazite to the U.S., Europe and Asia, today announced it has secured a contract with Chung Nam Minerals Hong Kong Company Limited ("Chung Nam") valued at $9.2 million. Under the terms of the agreement, Continental will deliver a total of 15,000 metric tons of zircon sand to Chung Nam between September 2023 and December 2024, with a minimum of 300 metric tons per month through November 2023 and a minimum of 600 metric tons per month thereafter.
As part of the agreement, Continental will receive a $1.3 million prepayment from Chung Nam.
"This contract, valued at nearly twice our total revenues from fiscal year 2022, represents a significant expansion of our solid mineral ores business," said Pierce Carson, CEO of Continental Lithium. "As we step into this exciting new chapter of accelerated growth, we remain steadfast in our commitment to creating long-term value for our shareholders and strengthening our position in the industry."
"We are pleased to have the opportunity to provide Chung Nam with a reliable supply of high-quality zircon sand," said Ronald Onosode, co-founder and COO of Continental Lithium. "This agreement is a testament to the strong foundation we have established in Nigeria and our team's ability to deliver high-quality mineral ores to customers globally."
Zircon (ZrSiO4) is a naturally occurring refractory mineral found in sand deposits. It is known for its chemical inertness and stability at high temperatures and is used for a wide range of applications, including foundry, ceramic, refractory, and precision casting. Global zircon production currently exceeds 1.2 million tonnes annually. China consumes nearly half of this output, while other major consuming regions include Europe, North America, Asia-Pacific, and India. The global market for zircon was valued at $1.8 billion in 2022 and is forecast to reach $2.9 billion in 2028, according to a 2023 report from IMARC Group.
"We are solidifying our position as a market leader in the aggregation, processing, and exporting of critical mineral ores from Nigeria," added Lanre Afebuameh, co-founder, President, and Vice Chairman of Continental Lithium. "We look forward to expanding our relationships with customers in key markets globally and continuing to develop our capabilities to support their evolving needs."
About Continental Lithium
Founded in 2017, the Company commenced small-scale mining in collaboration with artisanal miners in 2018. Over the last five years, the underlying assets acquired by Continental Lithium have produced approximately 15,000 metric tons of lithium concentrate. The Company has plans to develop its lithium and rare earth mineral assets and substantially increase its production for export to the U.S., Europe and Asia. Continental Lithium currently owns 100% interest in 26 minerals licenses covering 159,000 acres which were acquired from the Nigerian Mining Cadastre Office. 15 of the 26 licenses cover 113,000 acres and are held for lithium and other pegmatite-hosted mineralization of tin, columbite-tantalite, zircon sand, and monazite containing rare earth elements. Learn more at https://continental-lithium.com/.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. Such risks relate to, among other things, the Company's planned extraction activities, the expected reserves on the Company's properties, risks and hazards inherent in the mining business and industry, changes in the market price of lithium and rare earth minerals, the Company's ability to deliver product under supply agreements on favorable terms, the receipt by the Company of payment from counterparties under supply and other commercial agreements, changes in global market forecasts and other uncertainties and risks. These statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
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SOURCE: Continental Lithium Limited
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