Australian hard-rock lithium company Core Lithium (ASX:CXO) has terminated a legacy offtake agreement with Yahua International Investment and Development Co in relation to sale of spodumene concentrate from the Finniss Lithium Operation.
The company signed a spodumene concentrate agreement with Yahua in 2019, updated with a supplementary agreement in 2022. Yahua and Core have agreed to finish the offtake agreement through the execution of a legally binding deed of release.
As part of the settlement, the company has agreed to pay US$2 million in cash, which can be settled from current cash reserves.
Core Lithium CEO Paul Brown says the Finniss Restart Study continues progressing well and is on track for completion in the June quarter of 2025.
“We appreciate the constructive approach of Yahua in reaching this agreement, which reflects the long relationship between our two companies,” Brown says.
“The settlement of this legacy offtake agreement provides greater scope and opportunity for securing strategic funding sources to support a future restart of the Finniss Lithium Operation, which remains subject to board approval.”
The Finniss Lithium Operation is situated on the Cox Peninsula, south-west and 88km by sealed road from the Darwin Port, Northern Territory.
Write to Adam Orlando at Mining.com.au
Images: Core Lithium
