Australia’s next lithium producer, Core Lithium (ASX: CXO) has expanded its existing offtake agreement with Yahua by 50 per cent, with the customer to now take up 75,000 tonnes per annum of lithium concentrate from the Finniss lithium project starting from when first production is achieved around the end of 2019.
Emerging Australian lithium developer, Core Lithium Ltd (ASX: CXO) (“Core” or “the Company”) is pleased to announce that it has expanded its existing binding lithium offtake agreement (“Offtake Agreement”) with Yahua for its 100% owned Finniss Lithium Project, located near Darwin in the Northern Territory.
· Core and Yahua have agreed to expand lithium concentrate offtake commitment by 50%;
· Offtake has been increased to 75,000t per annum of 5.5% Li2O concentrate;
· The Offtake Agreement includes a floor price, guaranteeing a robust operating margin and revenue for the first 2 years;
· Core is in continuing discussions with various additional potential offtake partners and is focussed on executing further binding offtake agreements ahead of Financial Final Investment Decision (FID);
· Yahua is one of China’s largest lithium hydroxide and carbonate producers.
The Offtake Agreement is with one of China’s largest lithium hydroxide and carbonate producers, Ya Hua International Investment and Development Co. (“Yahua”), a wholly owned subsidiary of A$2Bn market value and Shenzhen-stock exchange listed Sichuan Yahua Industrial Group Co., Ltd.
Execution of the agreement illustrates Yahua’s support for the project as Core positions itself to be Australia’s next lithium producer.
Stephen Biggins, Core’s Managing Director commented, “The signing of the binding offtake agreement with Yahua for the Finniss Lithium Project is another significant milestone for Core, and we are delighted to further strengthen our strategic relationship with one of our largest shareholders.
“The offtake agreement underscores the strong relationship Core has developed with customers and high-quality chemical converters in Asia, who are suppliers into the fastgrowing lithium battery materials sector.
“Additionally, the strengthened terms further de-risks our development plans and gives substantial clarity on project funding as we embark on our plan to rapidly transition into production.”