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Chinese regulator approves Core/Ganfeng deal

22nd October 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Chinese regulators have approved an offtake agreement between Australian lithium developer Core Lithium and Ganfeng Lithium.

The offtake agreement covers 75 000 t/y of spodumene concentrate from the Finniss project, over a four-year term, with Ganfeng also investing A$34-million in Core through the acquisition of 100-million shares.

“I am delighted that the conditions underlying Ganfeng’s Offtake and Equity Investment have now been satisfied and I welcome Ganfeng as both a shareholder of Core and a world-class customer. We look forward to working closely with Ganfeng to deliver our Finniss lithium project,” said Core MD Stephen Biggins.

“Following the Core board’s positive financial investment decision for Finniss, our focus now is to commence construction and safely deliver Australia’s next lithium operation in line with our schedule to produce first quality lithium concentrate by the fourth quarter of 2022.”

A definitive feasibility study into the Stage 1 Finniss project, comprising an openpit operation and underground operation, estimated that the project would require an initial capital investment of A$89-million to support yearly lithium production of 175 000 t/y from a one-million-tonne-a-year plant.

The project has gained all Northern Territory government approvals and is fully funded following the successful raising of A$116-million.

The Ganfeng offtake adds to an existing offtake with Yahua for 75 000 t/y of spodumene concentrate, resulting in about 80% of the Stage 1 production being contracted over the first four years of the mine life.

Edited by Creamer Media Reporter

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