Core frees Finniss production 

All future Finniss spodumene production is now unencumbered, following the termination of Core Lithium’s (ASX: CXO) offtake agreement with Ganfeng Lithium. 

The offtake agreement was in relation to spodumene concentrate from the Finniss lithium project, located 88km by road southwest of Darwin Port in the Northern Territory. 

The earlier termination of the Yahua offtake agreement together with this settlement, effected through a one-off $3m (US$2m) payment to Ganfeng, all spodumene offtake obligations are removed, leaving 100% of future Finniss production unencumbered.  

This provides Core with complete marketing flexibility, with all future spodumene concentrate production now available for project partners or spot sales.  

Core Lithium chief executive Paul Brown says this is another important advancement for the company. 

“By concluding this agreement, Core has now unencumbered 100% of its future spodumene offtake available, allowing us to fully leverage the quality of our resource base and infrastructure within the strategic funding process,” he said. 

“This outcome complements the recently announced equity raising, which strengthens our balance sheet and enables us to advance the strategic funding process, providing the restart of Finniss with maximum flexibility and confidence.” 

Together with the recently announced Restart Study and $50m placement and follow on share purchase plan, the removal of all offtake commitments optimally positions Finniss as a strategic, long-life, low-cost and high-quality lithium restart opportunity, according to Core.