Pilbara Minerals have received WA Government approval for the Pilgangoora Lithium-Tantalum project, clearing the way for construction of the world’s next major Lithium supplier near Port Hedland. The company also hinted that news about project financing was imminent, which was widely expected after last week’s announcement of a major off-take agreement being struck.
Pilbara Minerals’ is set to begin Lithium production at Pilgangoora in the first quarter of 2018 after the WA government approved the company’s mining proposal.
The latest milestone, combined with the previously approved native vegetation clearing permit and project management plan, clears the way for the start of major site works at the Pilbara based project.
He said; “With the achievement of each of these important milestones, we have continued to de-risk the Pilgangoora project. Now, with project financing just around the corner, our shareholders can look forward to steady news-flow as we complete major construction milestones on site and move into the full-scale development phase — putting us on track to begin commissioning the project from the first quarter of next year.”
Project financing received a major boost last week with news that off-take agreements had been struck for all production from stage 1 of the project and up to 50% of stage 2.
Chinese company Ganfeng Lithium has committed to take 160,000 tonnes per annum of chemical grade spodumene concentrate over a 10-year term, with options to extend for a further 10 years.
This followed an off-take agreement last year with General Lithium for 140,000tpa and means Pilbara now have binding contracts for all production from Stage 1 of the development, processing 2Mtpa.
The breakthrough deal underwrites the revenues to be generated by Pilgangoora and clears the way for the completion of funding and a final investment decision.
Ganfeng have also committed to subscribe for not less than $US20 million in any equity placement by Pilbara Minerals to raise funds for Stage 1.