JOHANNESBURG (miningweekly.com) – ASX-listed joint venture partners General Mining and Galaxy Resources have signed a binding offtake agreement for their Mt Cattlin lithium project, in Western Australia.
The tri-party offtake agreement involving a Chinese buyer and General Mining’s exclusive selling and settlement agent, Tokyo-based Mitsubishi, came with a $9-million prepayment, which strengthened Mt Cattlin’s working capital position.
The completed agreement was for the sale of 30 000 t of spodumene concentrate in 2016 at a price of $600/t.
Discussions were under way with the other Chinese customer, which visited Mt Cattlin last week.
General Mining and Galaxy are restarting Mt Cattlin, which was closed for three years. First tantalum production was achieved on May 16, fed from existing crushed ore stockpiles. The coarse rejects from this process, containing the lithium, were being stockpiled ready for activation of the dense media separation circuit in June.