Prairie Limited (ASX:PL9) has signed an offtake heads of agreement with Hydro Lithium (101670.KQ), to supply 100% of the lithium-bearing crystallite from the company’s phase 1 commercial-scale, proof-of-concept plant.
The agreement currently outlines up to 150 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) from the Prairie Lithium project in Saskatchewan, Canada, with the goal to increase supply to up to 10,000 tpa LCE for 10 years.
Managing Director Paul Lloyd says that the binding agreement is the first step in selling their initial production and generating revenue from early operations.
“This is very similar to a spodumene concentrate transaction, a de-risked supply chain that allows resource companies to simplify operations and reduce capex by focusing on producing an intermediate product that can be brought to market quickly,” Lloyd says.
This agreement is in-line with Prairie’s diversified offtake strategy, complementing another recent offtake deal in North America.
Prairie Lithium is exploring and developing the Prairie Lithium project in Saskatchewan, Canada, with additional claims in New Mexico, US.
Write to Amy Rotman at Mining.com.au
Images: Prairie Limited
