Century Lithium's Sodium Hydroxide Offtake Agreement: A Boon for Nevada's Mining Industry and Local Supply Chain

Century Lithium Corp. (TSXV: LCE) (OTCQX: CYDVF) (Frankfurt: C1Z) has signed a non-binding memorandum of understanding (MOU) with Orica Specialty Mining Chemicals (Orica) on January 16, 2025, for a potential multiyear offtake agreement of sodium hydroxide (NaOH) from the Angel Island project in Nevada. This collaboration aims to strengthen Nevada's manufacturing and mining sectors by establishing a local supply chain for membrane-grade sodium hydroxide, reducing reliance on imports, and supporting the region's mining industry.



The MOU outlines an initial 5-year term, with a right of first offer for an additional 5 years, for Orica to purchase sodium hydroxide from Century Lithium. Pricing terms will be determined in the definitive agreement. This partnership will not only strengthen the U.S. supply chain but also support Nevada's mining industry by providing a steady supply of sodium hydroxide, a crucial chemical used in various mining processes.

Century Lithium's patent-pending process for extracting lithium from the claystone at Angel Island combines chloride leaching with direct lithium extraction and uses salt, in the form of solid sodium chloride or saline brine, to make the reagents for leaching and pH control. In addition to lithium, the process produces surplus sodium hydroxide, the sales of which are anticipated to underpin low operating costs for Angel Island's primary product, lithium carbonate.



The surplus sodium hydroxide production from Century Lithium's process contributes significantly to the project's overall economics by reducing operating costs and providing an additional revenue stream through the offtake agreement with Orica. This collaboration is expected to have positive implications for Century Lithium's financial performance, as it strengthens the U.S. supply chain and supports Nevada's mining industry.

Orica President Specialty Mining Chemicals Andrew Stewart commented on the collaboration: "This collaboration signifies our commitment to strengthening and unlocking Nevada's manufacturing and mining sectors. By securing a reliable source of sodium hydroxide from Angel Island, we strengthen the local supply chain and reinforce our dedication to innovative US manufacturing solutions for our customers in North America."

Century Lithium President and CEO Bill Willoughby added: "The non-binding MOU with Orica marks a key milestone for Angel Island. The MOU outlines the first expected agreement of its kind for the project and involves a large portion of the surplus sodium hydroxide anticipated during the early years of operation. We are excited to work with Orica and have their support at this stage of development at Angel Island."

In conclusion, Century Lithium's sodium hydroxide offtake agreement with Orica is a significant development for Nevada's mining industry and local supply chain. This collaboration strengthens the U.S. supply chain, reduces reliance on imports, and supports Nevada's mining industry by providing a steady supply of sodium hydroxide. The surplus sodium hydroxide production from Century Lithium's process contributes to the project's overall economics and has positive implications for the company's financial performance. As the partnership progresses, it is expected to bring further benefits to both companies and the region.