Core Lithium (ASX:CXO) expand spodumene sales

Core Lithium has loaded an extra 18,500 tonnes of lithium spodumene concentrate into a deal with Chinese manufacturer Sichuan Yahua supplied from its world-class Finniss Lithium Operation just south of Darwin Port in Australia’s Northern Territory.

The deal significantly sweetens the already lucrative 300,000-tonne initial deal which Core says demonstrates a strong, long-term relationship between itself and Yahua.

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CORE EXP FPO [CXO]

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Core Chief Executive Gareth Manderson said the prepayment provides additional working capital and assists the company in managing cash flow as it continues to ramp up operations.

“We are pleased to put these mutually beneficial agreements in place which sees us
sell our high quality spodumene concentrate to a valued customer,” he said.

“Commencement of concentrate production early this year and the agreement for the
first sale of concentrate from the Finniss mine demonstrates that Core continues to
deliver against its milestones.”

It marks the first sale of spodumene concentrate from Finniss, with around 3500 tonnes produced during Dense Media Separation commissioning, ready for shipping by the end of next month, and an additional 15,000 set to be purchased under the pre-payment agreement.

Yahua’s annual lithium salt production capacity exceeds 70,000 tonnes, and the A-share listed on the Shenzhen stock exchange plan to up its capability to beyond 100,000 tonnes by 2025, while Core maintains its objective to assess the potential of adding its own downstream processing opportunities to accommodate a Finniss Project backed by its DFS to produce an average of 173ktpa of high-quality lithium concentrate.

CORE EXP FPO [CXO]

Sector: Basic Materials

Industry: Other Industrial Metals & Mining

Employees:

Core Lithium Ltd engages in the development of lithium and various metal deposits in Northern Territory and South Australia. The company primarily explores for gold, silver, uranium, lead, zinc, rare earth elements, and base metals. Core Lithium Ltd was incorporated in 2010 and is based in Perth, Australia.

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