LOPAL TECH (Jiangsu Lopal Tech. Group Co., Ltd.) has entered into a legally binding Subscription, Offtake and Prepayment Term Sheet with Australia-listed Global Lithium Resources Limited (GL1) and its wholly owned subsidiary GLR Australia Pty Ltd (GLR) to strengthen long-term lithium supply.
Under the agreement, LOPAL TECH will subscribe for 13.84 million newly issued GL1 shares at AUD0.52875 each, investing AUD7.32 million for a post-transaction 5% equity stake. The purchase is contingent on securing all required regulatory clearances.
The deal grants LOPAL TECH the right to purchase 40% of the annual output from GLR’s Manna Lithium Project for an initial 10-year term, extendable by four years. GLR will endeavour to supply at least 70,000 t of spodumene concentrate per year. Product pricing will reference industry indices (SMM, Fastmarkets, Benchmark Minerals Intelligence, Asian Metal and S&P Global Platts) with an agreed discount.
To finance project development, LOPAL TECH will provide up to USD75.00 million in prepayments: • USD7.50 million (10% of the total) within 30 days after conditions are met, including completion of the share subscription and GLR’s final investment decision (FID). • The remaining USD67.50 million will be disbursed in four equal tranches of USD16.88 million, tied to construction milestones. GLR will pay compound interest at 5% per annum on the outstanding balance, and prepayments will be offset against future product deliveries.
GLR aims to reach FID on the Manna Lithium Project by end-2026, with mine construction starting thereafter and first shipments targeted for June 2028. The project currently hosts a 51.6 million-tonne resource grading 1.0% Li₂O.
Funding for the share subscription and prepayment will come from LOPAL TECH’s internal resources. Management expects no material impact on current-year earnings, though the staged USD75.00 million prepayment could create periodic cash-flow pressure. The transaction does not alter the company’s consolidated reporting scope and falls below Hong Kong Listing Rules thresholds for notifiable or connected transactions.
Key risks highlighted include cross-border regulatory approvals, project construction delays, potential supply shortfalls, lithium price volatility, and exchange-rate fluctuations, all of which could influence future returns and raw-material security.