LOPAL TECH (02465) saw its shares rise more than 4% in afternoon trading. At the time of writing, the stock was up 2.23% to HK$18.31, with a turnover of HK$386 million. The company recently announced that it has signed a term sheet with GL1 and GLR for subscription, supply, and prepayment arrangements to support its growing raw material needs. Key terms of the agreement include the subscription of GL1 shares, the supply of spodumene concentrate from the Manna project held by GLR, and related prepayment arrangements. Under the agreement, subject to meeting subscription conditions, LOPAL TECH will subscribe to 13.84 million fully paid ordinary shares of GL1 at A$0.52875 per share, representing 5% of GL1's issued share capital post-transaction, with a total investment of approximately A$7.318 million. Additionally, GLR will supply 40% of the annual actual production of spodumene concentrate from the Manna lithium project to LOPAL TECH over a ten-year period, starting from the first supply date, with the possibility of extension under certain conditions. GLR will also endeavor to guarantee a minimum annual supply of at least 70,000 tonnes. Subject to meeting prepayment conditions, LOPAL TECH will provide a prepayment of up to US$75 million to GLR, which will be offset against payable amounts upon acceptance of the supplied products.
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