Ganfeng Lithium Expands Offtake Agreement With Neometals

Neometals (ASX:NMT) and Mineral Resources (ASX:MIN) reported that Ganfeng Lithium, China’s leading lithium producer, has agreed to expand the scope of its initial offtake agreement.
As quoted in the press release:

Metallurgical test work has identified an additional spodumene product can be generated through the addition of a flotation circuit to the current beneficiation plant. Neometals and MIN are pleased to advise that Ganfeng has agreed to expand the scope of the offtake arrangements to take-or-pay an additional 80,000 tpa of spodumene concentrate of between 4% and 6% Li2O content, generated by flotation at agreed discounts to the market prices for the 6% Li2O product.
The expansion remains conditional on RIM and MIN (via its wholly owned subsidiary, Process Minerals International Pty Ltd) agreeing and finalising the necessary variations to the Mining Services Agreement to cover the production of the lower grade product, which will include the addition of a flotation plant at the Mt Marion Project. The variation will be concluded on completion of a detailed metallurgical test program currently being undertaken.

Click here for the full press release.