Pilbara Minerals board approves Pilgangoora

Pilbara Minerals will soon begin construction at its Pilgangoora lithium project, with the board this morning giving the green light for the $214 million development.

The aspiring miner’s board approved the final investment decision today, with remaining key contracts to be executed.

“As a result, the balance of the required funds to support the full commercial development of the project has now been secured and, as such, Pilbara’s board has authorised management to progress with the balance of the Pilgangoora project construction,” the company said in a statement.

“Those works will now proceed on an expedited basis.”

The decision follows the recent receipt of about $133 million through a bond issue, and a further $50 million by way of a placement.

Pilbara also announced today it had locked in an underwriting agreement with UBS and Hartleys for the company’s upcoming $15 million share purchase plan, while the full $27 million equity commitment from offtake partner Jiangxi Ganfeng Lithium had also been received.

The company plans to ship first spodumene and tantalite concentrates by April next year.

Pilbara managing director Ken Brinsden said the approval was a huge milestone for the company, and marked the beginning of its transformation into a lithium producer.

“The final investment decision follows hard on the heels of our recent successful fundraisings, reflecting our determination to deliver the Pilgangoora project as quickly as possible,” he said.

“Our rapid progress since completing the definitive feasibility study in September last year is a credit to the hard work of the Pilbara Minerals team and the ongoing support of our shareholders.

“As a result, Pilbara Minerals is now firmly set on the path to near-term production – against the backdrop of accelerating demand for lithium raw materials globally.

“We look forward to playing an important role in this new, exciting and rapidly growing industry.”

Pilbara shares were unchanged at 36.5 cents each at midday.