Australia’s next lithium producer, Core Lithium Ltd (ASX: CXO) (Core or Company), is pleased to announce that its binding offtake agreement (Offtake) with a subsidiary of Jiangxi Ganfeng Lithium Co., Ltd (Ganfeng) for the supply of 75,000 tonnes of Li2O spodumene concentrate per annum over 4 years and an associated $34 million equity issue (see ASX announcement dated 9 August 2021) have become unconditional following receipt of all necessary regulatory approvals in China.
HIGHLIGHTS
- Offtake agreement with Ganfeng Lithium for offtake of 75ktpa of spodumene concentrate over 4 years is now unconditional following receipt of Chinese regulatory approvals.
- Chinese approvals follow Core’s Final Investment Decision.
- Offtake agreement is referenced to the market price for 6% Li2O spodumene concentrate with a price floor.
- Offtake adds to Core’s existing offtake with Yahua of 75ktpa, resulting in approximately 80% of Finniss’ Stage 1 production contracted over the first 4 years of the mine life.
- Core has received $34 million from Ganfeng and will be issued ~100 million shares in Core.
This announcement follows the Company’s announcement (see ASX announcement dated 30 September 2021) that the Board had taken a Final Investment Decision (FID) to commence development of Core’s wholly owned Finniss Lithium Project (Finniss), located near Darwin in the Northern Territory.
Core is fully funded for Finniss’ development through to first lithium concentrate production, scheduled for Q4 2022.
Core Lithium Managing Director Stephen Biggins said:
“I am delighted that the conditions underlying Ganfeng’s Offtake and Equity Investment have now been satisfied and I welcome Ganfeng as both a Shareholder of Core and a world-class customer. We look forward to working closely with Ganfeng to deliver our Finniss Lithium Project.
“Following the Core Board’s positive Financial Investment Decision for Finniss’, our focus now is to commence construction and safely deliver Australia’s next lithium operation in line with our schedule to produce first quality lithium concentrate by Q4 2022.”
