Core Lithium announced an agreement with long-term customer Sichuan Yahua to sell its first spodumene concentrate from the Finniss Lithium Operation.
The parcel of roughly 3,500 tonnes is being produced during the commissioning of the Finniss DMS (Dense Media Separation). It will be sold to Yahua FOB and ready for shipping by the end of April 2023.
Yahua has also agreed to buy an additional 15,000 tonnes of concentrate on a prepayment basis. The parcel will be made with ore extracted from the Grants pit. Payment for 80% of this volume is slated for April 2023, with the remaining balance due upon shipping.
According to Core Lithium, the agreements are in addition to the previous binding agreement inked in 2019 to sell Yahua 300,000 tonnes over four years.
Core Lithium CEO Gareth Manderson stated that it is gratifying to announce the sale of the company’s first concentrate goods to Yahua, a long-term Core partner and strong supporter of the Finniss Project.
“We are pleased to put these mutually beneficial agreements in place which sees us sell our high-quality spodumene concentrate to a valued customer. The prepayment provides additional working capital and assists Core to manage our cash flow as we continue to ramp up operations,” Manderson said.
Manderson added that the start of concentrate production early this year and the arrangement for the first sale of concentrate from the Finniss mine demonstrate that Core is meeting its milestones.
