• Offtake agreement signed with LG Energy Solution for 25% of spodumene concentrate from Seymour lithium project
  • GT1 is accelerating efforts to become Ontario’s first lithium producer
  • Drilling at 12.6Mt Root Bay project continues, resource update due early Q4


The first offtake agreement for lithium production in Ontario is now signed, with Green Technology Metals to provide LG Energy Solution (LGES) 25% of annual output from its Seymour project.

The full form agreement is on the back of a May offtake term sheet and equity subscription where LGES invested $20m into Green Technology Metals (ASX:GT1), making it the explorer’s second-largest shareholder with 7.89%.

While Quebec has its prolific James Bay lithium district kicking off with major projects, northwest Ontario is becoming a hotbed of lithium and other critical minerals in its own right.

There’s a plethora of battery and car manufacturers swooping into the province, and this deal with LGES is another example of the attractiveness of not only Ontario, but Canada as a whole.

GT1’s 9.9Mt Seymour project is the company’s first-off-the-rank project development.

The explorer also has two other hard rock lithium developments in the Canadian province, including the Root project, which has an MRE of 12.6Mt @ 1.21% Li2O, and the Wisa project.

Accelerated, targeted exploration across all three projects has strong potential to grow resources “rapidly and substantially”, the company says.


The agreement

GT1 will sell to LGES 25% of its spodumene concentrate production from the Seymour project for the first five years of commercial production.

As part of the agreement, if GT1 develops a lithium hydroxide conversion facility during the period it has the option to deliver the equivalent content to LGES in the form of lithium hydroxide at prevailing prices.

If GT1 develops and commences production from either Root, Wisa or Allison Lake before Seymour then the offtake will transfer and apply to the project that starts producing first.

Green Technology Metals (ASX:GT1)
Map of Green Technology’s lithium projects in Ontario, Canada. Pic supplied: (GT1).

LGES is a global leader and innovator in EV battery manufacturing and having formalised arrangements for it to become a significant customer is a tremendous achievement, GT1 chief executive officer Luke Cox says.

“The agreement delivers strategic alignment within Ontario’s critical minerals supply chain and marks the first definitive lithium offtake agreement for Ontario,” he says.

“Importantly, it builds additional capabilities for GT1 as we advance our flagship Seymour Project and lithium chemical plant, in line with the Company’s strategy to become the first lithium producer in Ontario with vertical integration.”


Recent activities

GT1’s huge 22km drilling program at Root Bay is ongoing, with latest results showing grades of up to 1.77% Li2O.

Standout assays from the latest 26-hole batch from infilling at Root Bay include:

  • 17.4m at 1.60% Li20 from 110.8m in hole RB-23-1026;
  • 16.0m at 1.71% Li20 from 100.9m in hole RB-23-1027;
  • 17.0m at 1.55% Li20 from 296.0m in hole RB-23-1073;
  • 14.6m at 1.76% Li20 from 223.6m in hole RB-23-1043;
  • 13.5m at 1.65% Li20 from 181.7m in hole RB-23-1030; and
  • 12.9m at 1.62% Li20 from 317.5m in hole RB-23-1071.

The project currently has an inferred MRE of 12.6Mt @ 1.21% Li20. An updated Mineral Resource Estimate for Root Bay is planned to be released early Q4 2023.




This article was developed in collaboration with Green Technology Metals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.