Core Lithium pays $2m to terminate last Finniss offtake
Lithium company Core Lithium has scrapped its last binding supply deal with a Chinese customer, paying $2-million to terminate its offtake agreement with Ganfeng Lithium and free up future production from its Finniss project near Darwin.
The move follows the earlier cancellation of a contract with Yahua in May and means that all spodumene output from the Northern Territory mine is now unencumbered.
Core says this will allow it to chase higher-value spot sales or strike new partnerships as it seeks to refinance and restart operations.
The company has been under pressure from weak lithium prices, suspending mining at Finniss earlier this year and launching a strategic funding process alongside a $50-million equity raising. The termination of Ganfeng’s deal, Core says, strengthens its hand in those negotiations.
“Today’s announcement is another important advancement for Core. 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," comments CEO Paul Brown.
"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. We thank Ganfeng for their past support.”
Finniss, located about 88 km from Darwin port, is being positioned by Core as a long-life, low-cost and high-quality lithium restart opportunity.
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