Atlas Iron Ltd. said June 18 that it made the first shipment of lithium direct shipping ore sourced from Pilbara Minerals Ltd.'s Pilgangoora project in Western Australia to Sinosteel Australia Pty Ltd.
The shipment is part of a deal signed in March, where Atlas Iron would sell up to 1.5 million tonnes of direct shipping ore to Sinosteel over a 15-month period on a fixed-price basis. Sinosteel also advanced funds to cover prepayments due to Pilbara Minerals for mine development costs as part of the arrangement.
In December 2017, Pilbara Minerals inked an off-take deal to sell at least 1.0 million tonnes of unprocessed run-of-mine lithium-tantalum direct shipping ore, on a mine gate sale basis, produced from Pilgangoora to Atlas Iron.
Shares in Atlas Iron jumped more than 22% by trading close on the same day after Gina Rinehart's Hancock Prospecting Pty Ltd. lodged an off-market takeover bid to acquire the iron ore explorer, in which it owns a 19.6% stake.