Altura Mining has signed a Cornerstone Investment Framework Agreement (Terms Sheet) with Zinciferous Limited, with a cornerstone investment size expected to reach up to AU$3 million.
|The 6,000tpa LCE Tianyuan Plant|
The Terms Sheet, which is non-binding, provides a potential opportunity for Altura to participate in the downstream processing of lithium in a newly constructed lithium conversion facility in China.
Zinciferous is an unlisted Australian public company which holds an option to acquire up to an 80 per cent interest in the newly constructed Tianyuan Lithium Carbonate Plant together with certain spodumene concentrate supply and lithium chemical offtake rights.
Commenting on the signing of the Terms Sheet, Altura Managing Director, James Brown, said that Altura welcomed the opportunity to consider a cornerstone investment which could lead to downstream processing exposure and further lithium concentrate offtakes.
“We continue to focus on diversifying our offtake partner base, improving production efficiency and delivering high-quality lithium concentrate into the market,” said Mr Brown.
Commenting on the signing of the Terms Sheet Zinciferous Chairman, Russell Moran, said that the Altura Lithium Mine has built an international reputation for high quality spodumene concentrate.
“We are pleased to be cultivating a relationship with Altura as we seek to commission and expand the Tianyuan lithium carbonate plant.”
The Terms Sheet expires on 22 October 2019, unless extended by parties in writing. Further, the Terms Sheet does not create any joint venture or partnership between Altura and Zinciferous and does not bind Altura to complete a Cornerstone Investment. The parties may terminate the Terms Sheet at any time, after which the parties will be released of their obligations under it without further liability.
The Tianyuan Plant was constructed in 2018 under the supervision of Foster Wheeler (Hebei) to a nameplate capacity of approximately 6,000tpa of lithium carbonate and has been permitted for expansion to 12,000tpa of lithium carbonate. It has been cold commissioned and is awaiting spodumene concentrate to be supplied for hot commissioning and the commencement of commercial production.
The Plant is located in a State Chemical Industry Park which boasts excellent power, water and road infrastructure and is approximately 20 kilometres from Huanghua Port, one of China’s largest ports.