Australian lithium miner Core Lithium (ASX: CXO) today announced agreements for the sale of approximately 18,500 tonnes of spodumene concentrate from the Finniss Lithium Operation to Sichuan Yahua that are in addition to the existing binding offtake agreement for the sale of 300,000 tonnes over four years.
Agreements were reached for the sale of the first parcel of spodumene concentrate of approximately 3,500 tonnes, which is being produced during Finniss DMS (Dense Media Separation) commissioning, and an additional 15,000 tonnes of concentrate that will be produced from ore to be mined from the Grants pit.
The first parcel will be sold to Yahua on a FOB basis and is expected to be ready for shipment by the end of April 2023. The additional 15,000 tonnes of concentrate will be sold under a pre-payment arrangement. Payment for 80% of this volume is scheduled in April 2023, with the balance due upon shipment.
Pricing for both cargos is linked to the Fastmarkets (spodumene 6% CIF China) price with no floor or ceiling.
The agreements for these tonnes are in addition to the existing binding agreement to sell Yahua 300,000 tonnes over four years, signed in 2019.
Core Lithium CEO Gareth Manderson said:
“It is pleasing to be able to announce the contract for sale of our first concentrate products to Yahua who have been a long-term partner for Core and strong supporter of the Finniss Project.”
“We are pleased to put these mutually beneficial agreements in place which sees us sell our high quality spodumene concentrate to a valued customer. The prepayment provides additional working capital and assists Core to manage our cash flow as we continue to ramp up operations.”
“Commencement of concentrate production early this year and the agreement for the first sale of concentrate from the Finniss mine demonstrates that Core continues to deliver against its milestones.”