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.