By Rhiannon Hoyle

Atlas Lithium Corp. said Wednesday that it has signed a memorandum of understanding with Japan's Mitsui & Co. on potential future lithium supplies.

The nonexclusive agreement relates to a possible funding arrangement of up to $65 million that would give Mitsui the right to buy planned future lithium-concentrate production from the Nasdaq-listed company. Atlas Lithium is working on a hard-rock lithium project in Brazil's Minas Gerais state.

The so-called offtake funding would include an initial payment, as early as the second quarter of this year, followed by two tranches, likely in 2024, Atlas Lithium Chairman and Chief Executive Marc Fogassa told Dow Jones Newswires. It would be used primarily by the company for the construction of a lithium-concentrate plant.

Mitsui would get the right to buy up to 100% of Atlas Lithium's output from the proposed 150,000-ton-a-year plant at a cost that would be linked to market prices, the mineral-exploration company said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

January 18, 2023 08:14 ET (13:14 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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