- Pilbara Minerals (PLS) will receive a US$15 million (roughly A$19.35 million) prepayment from Yibin Tianyi under an expanded offtake agreement
- The prepayment will be used to fund stage one improvements at the Pilgangoora Project processing plant
- It comes in support of additional offtake for Yibin Tianyi, which will receive a further 40,000 tonnes per year of spodumene concentrate
- Site work at Pilgangoora is expected to begin later this month, with commissioning scheduled for the September quarter this year
- Pilbara Minerals is up 1.02 per cent to $1.06 per share
Pilbara Minerals (PLS) will receive a US$15 million (roughly A$19.35 million) prepayment from Yibin Tianyi under an expanded offtake agreement.
The prepayment, which will be made to Pilbara Minerals’ operating subsidiary, Pilgangoora Operations, will be used to fund stage one improvements at the Pilgangoora Project processing plant.
This work is anticipated to increase production at plant by between 30,000 and 50,000 tonnes per year of spodumene concentrate.
The prepayment comes in support of additional offtake for Yibin Tianyi. Following the commissioning of plant, a further 40,000 tonnes per year of spodumene concentrate will be added to Yibin Tianyi’s existing 75,000-tonne, five-year offtake deal.
Available for drawdown by Pilgangoora Operations from March 31 onwards, the US$15 million (roughly A$19.35 million) prepayment will be repaid over a three-year period from January 1, 2022, through an offset against spodumene concentrate sold and delivered to Yibin Tianyi.
Shipments of the additional product are expected to begin either later this year or early in 2022.
“Our relationship continues to grow with Yibin Tianyi as we work together in support of both our businesses’ growth ambitions,” said Ken Brinsden, Managing Director and CEO of Pilbara Minerals.
“For Yibin Tianyi, to become one of the biggest lithium chemical suppliers in China with the support of our major shareholder, CATL and for us to become one of the largest, lowest cost lithium raw material suppliers in the world.”
A joint venture between construction contractors SIMPEC and IronMerge has been awarded a $15 million contract to carry out the stage one improvement work, which is scheduled to begin later this month.
“This joint venture is a demonstration of companies working together to support Aboriginal business enterprises to grow and create opportunities for local people,” Brinsden added.
Pilbara Minerals is up 1.02 per cent to $1.06 per share at 1:39pm AEDT.