logo-loader
viewioneer Ltd

ioneer signs binding offtake for over half of its project's annual boric acid production

ioneer intends to produce lithium carbonate and boric acid from its flagship Rhyolite Ridge Lithium-Boron Project in Nevada, US.

ioneer Ltd - ioneer signs binding offtake for over half of its project's annual boric acid production
Broker Ord Minnett have raised their price target by 5.3% to 40 cents per share

ioneer Ltd (ASX:INR) has signed its first binding offtake agreement for the supply of 105,000 tonnes of boric acid per annum for five years.

Notably, this represents over half the expected boric acid annual production from Rhyolite Ridge.

The agreement is with Chinese boron company Dalian Jinma Boron Technology Group Co. Ltd, a top 500 Chinese private enterprise that operates one of the most complete boron industrial supply chains in the world.

The agreement is conditional on ioneer making a positive final investment decision, expected in early 2021.

Another significant milestone for ioneer

ioneer’s managing director Bernard Rowe said: “Signing our first large-volume offtake agreement with a major global customer is a significant milestone for ioneer.

“It validates the strong demand we see for our premium quality boron products.

“Jinma is intricately involved in all aspects of the boron supply chain which makes them an excellent first customer for ioneer.

Agreement will help with securing financing

“The addition of Jinma as a customer validates the quality of our product and will also help position ioneer ahead of securing financing, as we move Rhyolite Ridge toward production.

“The ability to secure significant contract demand demonstrates to the market our confidence in ioneer becoming a major, low cost, US producer of lithium.

“ioneer looks forward to updating the market further regarding the progress of negotiations in relation to its global sales and marketing plans for the Rhyolite Ridge lithium and boron off-take in the near term.”

Agreement pricing based on market rates

Supply of boric acid will be based on prevailing market prices for similar volumes and quality and remain at a fixed price for the first six-months of delivery with regular price adjustments thereafter.

Quick facts: ioneer Ltd

Price: 0.082 AUD

ASX:INR
Market: ASX
Market Cap: $137.75 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of ioneer Ltd named herein, including the promotion by the Company of ioneer Ltd in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: ioneer outlines plans to become large lithium and boron producer

ioneer Ltd (ASX:INR) managing director Bernard Rowe speaks to Proactive about its plans to become a large domestic producer of lithium and boron from the Rhyolite Ridge project in the United States. Rowe also touched on the company’s aim to become an important player in the domestic supply...

on 6/3/20

2 min read