Kidman Resources Limited (Kidman) announced it has entered into a binding heads of agreement (Heads of Agreement) with Mitsui & Co. Ltd. (Mitsui) in relation to the supply of lithium hydroxide. The Heads of Agreement is for an initial term of two years, plus 2 further two-year extension options. Agreed volumes to be supplied by Kidman will gradually increase and equate to less than 15% of Kidman's share of nameplate production from the Refinery of 22.6kt per annum. Pricing will be variable and based on the price Mitsui achieves from its customers and prevailing international prices. There is a floor price for the duration of the initial term and any extension terms. The Heads of Agreement covers the essential commercial elements of the arrangements and is binding. The obligation of Kidman to supply under the Heads of Agreement is subject to two conditions precedent, being the finalisation of product specifications and the lithium hydroxide produced by the Mt Holland Lithium Project being qualified for use by Mitsui customers. The parties have agreed to enter into a definitive supply agreement by 30 June 2019. If a definitive supply agreement is not executed by that date either party will have the option to terminate the Heads of Agreement based on pre-agreed conditions. The parties have also agreed to progress discussions in relation to a potential spodumene offtake agreement covering any excess spodumene concentrate produced from the Mt Holland Lithium Project that is not required for the Refinery.