Core Exploration Ltd. said July 30 that it signed a nonbinding term sheet with Shandong Ruifu Lithium Co. Ltd. for the off-take of up to 150,000 tonnes per year of lithium concentrate from the Finniss lithium project in Australia's Northern Territory.
Shandong Ruifu will provide a conditional US$35 million prepayment facility, as well as secure a 10% interest in the ASX-listed explorer through the participation in a A$3.0 million share placement, under the deal.
The prepayment facility is conditional on Core Exploration reaching a decision to mine at Finniss. Both parties are working to conclude a binding deal shortly.
In late 2017, Core Exploration signed a binding off-take agreement with Sichuan Yahua Industrial Group Co. Ltd. unit Ya Hua International Investment and Development Co. Ltd. for direct shipping ore output from Finniss.
A pre-feasibility study for the Grants deposit, part of the Finniss project, outlined a pretax net present value, discounted at 10%, of A$140 million, an internal rate of return of 142% and a 12-month payback period under a base case scenario.