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Core inks offtake MoU

19th August 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Lithium developer Core Lithium has inked a non-binding memorandum of understanding (MoU) with potential offtake partner Xinfeng for between 20 000 t/y and 30 000 t/y of offtake from the Finniss lithium project, in the Northern Territory.

Core said on Wednesday that the term sheet with Xinfeng paved the way for a binding offtake agreement, and also held the potential for project finance, subject to due diligence by Xinfeng and a final investment decision on the Finniss project.

The potential new offtake agreement supplements Core’s existing binding offtake agreement with Yahua for 75 000 t/y, and a non-binding MoU with Transamine Trading for 50 000 t/y. The offtake agreements represent some 85% of the planned production capacity of 175 000 t/y.

A previously completed prefeasibility study into the Finniss project estimated a pre-production capital requirement of A$53.5-million to develop a one-million-tonne-a-year operation producing 225 000 t/y of lithium concentrate.

Core is aiming to complete offtake arrangements and have the project construction ready in 2020, ahead of sourcing debt and equity to achieve financial close.

Edited by Creamer Media Reporter

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