logo-loader
viewCore Lithium Ltd

Core Lithium lands first European offtake deal for spodumene concentrate from Finniss

The company and Transamine Trading have agreed to the annual supply of 50,000 tonnes of spodumene concentrate from the Finniss Lithium Project over five years.

Core Lithium Ltd - Core Lithium confirms non-binding term sheet with Geneva-based Transamine Trading for 50,000tpa spodumene concentrate
A fully binding offtake agreement to be negotiated over coming months

Core Lithium Ltd (ASX:CXO) has secured its first European offtake deal after signing a non-binding offtake term sheet with Transamine Trading for the supply of 50,000 tonnes per annum of spodumene concentrate from the Finniss Lithium Project near Darwin.

This offtake comes in addition to Core’s existing binding offtake agreement with Yahua for 75,000 tonnes per annum.

The term sheet paves the way for a binding offtake agreement, which is anticipated later in 2020 and subject to due diligence and a final investment decision (FID) on the Finniss Project by Core.

Focused on project development

Managing director Stephen Biggins said this was a big step in cementing Core’s relationship with this offtake partner.

“Transamine, among other existing and prospective offtake partners, has recognised the excellent prospects for Core Lithium to become an efficient and reliable supplier of high-quality spodumene concentrate from Darwin, with the support of the Northern Territory Government.

“Core Lithium remains focused on developing the Finniss Lithium Project for the benefit of all stakeholders including the Northern Territory and the growing number of offtake partners and project financiers.

“We are encouraged by the ongoing confidence in lithium demand and project support despite the current challenging environment as we progress towards construction, commissioning and production.”

The initial supply period is for five years, with the option to extend in anticipation of the longer life of mine in a forthcoming revised feasibility study on the Finniss project.

Reinforces confidence in project

The signing of the term sheet with Transamine is the result of in-depth engagement with several potential offtake parties and project financiers, which have accelerated since the recent NT Government approval for mining and production from the project.

The company believes this offtake term sheet reinforces the confidence in the Finniss Project and the long-term demand fundamentals of lithium beyond current COVID-19 challenges.

Core continues to actively negotiate with a number of parties for the remaining planned production.

Suspension from official quotation

The securities of Core have been suspended from ASX quotation immediately under Listing Rule 17.2, at the request of CXO and pending the release of an announcement in relation to a capital raising.

The suspension will remain in place until the beginning of trade on Wednesday, May 20, or when an announcement is released to the market.

Quick facts: Core Lithium Ltd

Price: 0.042 AUD

ASX:CXO
Market: ASX
Market Cap: $38.68 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 Core Lithium Ltd named herein, including the promotion by the Company of Core Lithium Ltd in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Core Lithium expects to be construction-ready at Finniss Lithium project by...

Core Lithium Ltd's (ASX:CXO) Stephen Biggins tells Proactive's Andrew Scott their short- and medium-term goals have not been materially impacted by the COVID-19 pandemic and excellent progress is being made on the updated feasibility study for the Finniss Lithium Project in the Northern...

on 5/5/20

2 min read