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 Cores 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 Cores 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 Read More – Source