- Core Lithium (CXO) has signed a mining services contract with Lucas Total Contract Solutions for its Finniss Lithium Project
- Lucas will carry out open pit mining and other associated services at the Grants Open Pit, which is located within the project near Darwin
- The contractor will work at Grants for three years, with the open pit the first mine to be developed at the lithium project
- COX expects the first lithium production from Finniss by the end of 2022, with a final investment decision expected shortly
- Company shares are up 6.17 per cent at 43 cents each at 11:05 am AEST
Core Lithium (CXO) has signed a mining services contract with Lucas Total Contract Solutions for its Finniss Lithium Project.
The three-year contract will see Lucas carry out open pit mining and other associated services at the Grants Open Pit.
The open pit is the first mine being developed at the Finniss project, which is located near Darwin in the Northern Territory.
CXO recently raised $91 million via an institutional placement and $25 million through a share purchase plan for its flagship project.
It also received a $34 million equity investment which is subject to an offtake agreement with a subsidiary of Jiangxi Ganfeng Lithium.
Core has agreed to supply the Chinese company 75,000 tonnes per annum of spodumene concentrate from Finniss for four years.
The company expects to ramp up construction at Finniss throughout 2022,
with first spodumene production anticipated late next year.
Core Lithium’s Managing Director Stephen Biggins added the project was fully financed with a final investment decision expected shortly.
“We are pleased to progress Lucas from preferred contractor status to our inaugural mining contractor, representing a major step forward for Core as it moves towards first construction at the Finniss Lithium Project this year,” Mr Biggins said.
“Advanced discussions with such a high-calibre and respected team such as Lucas with proven lithium mining experience has facilitated this step and we are looking forward to partnering with this key services provider to deliver Australia’s next significant new lithium mine.”
Company shares were up 6.17 per cent at 43 cents each at 11:05 am AEST.