Core Lithium Ltd (ASX:CXO) has entered into an agreement for the rights to apply for an Ancillary Mineral Lease from Lithium Plus Pty Ltd and which would form part of the Finniss project in the Northern Territory.
This agreement covers an area on exploration licence EL31133 adjacent to the company's proposed Grants mine and lithium concentrate processing plant upon which ancillary activity in the form of surface water storage is proposed by Core.
The consideration payable for the acquisition amounts to almost 1.27 million Core shares valued at $50,000 to Lithium Plus Pty Ltd.
Existing Core tenements accommodate 70% of the project’s water requirements and this ancillary mineral lease is set to expand water availability as well as future production capacity for the Finniss project.
The Finniss project, within 25 kilometres of port, power, gas and rail facilities, has one of the best-supporting infrastructure and logistics chains to Asia of any Australian lithium project.
The company is planning to begin spodumene concentrate production in late 2020, subject to financing and regulatory approvals.
Core has established offtake and prepayment agreements and is also in the process of negotiating further agreements with some of Asia’s largest lithium consumers and producers.