Pilbara Minerals Signs Offtake Deal for Stage 2 Output at Pilgangoora

Pilbara Minerals Ltd. (ASX:PLS) announced that it has executed a binding term sheet with Great Wall Motor Company, one of China’s largest automotive manufacturers. The deal will further underpin the Stage 2 expansion of the company’s Australia-based Pilgangoora lithium-tantalum project.
Highlights of the agreement include:

• Binding terms sheet executed with Great Wall Motor Company and its wholly-owned subsidiary, Hong Kong-registered Billion Sunny Development Limited (“Great Wall”), one of China’s largest automotive manufacturers, for Stage 2 (5Mtpa) off-take from Pilbara’s flagship Pilgangoora Lithium-Tantalum Project in Western Australia.
• Off-take pricing is largely consistent with existing off-take agreements, using a market-linked price reference to Battery Grade Lithium Carbonate sold in China to determine spodumene pricing.
• Great Wall’s Stage 2 off-take to comprise 75,000tpa of chemical grade spodumene concentrate (SC6.0 basis) over an initial 5-year term, with the ability to extend for up to a further 10 years via two 5-year options.
• Under the agreed off-take terms, Great Wall has the ability to secure a further 75,000tpa of Stage 2 offtake, for a total off-take volume of 150,000tpa, by providing Pilbara with US$50 million of debt financing for its Stage 2 expansion either via a debt or off-take pre-payment facility.

Ken Brinsden, managing director of Pilbara, commented:

This marks an important milestone for Pilbara and the Pilgangoora Project and is a significant development for the rapidly evolving lithium-ion raw materials supply chain globally.
It highlights the strategic importance for the global automotive sector of securing access to large scale, consistent, high quality sources of battery raw materials in low-risk jurisdictions. Attracting a company of Great Wall’s size and calibre as a long-term off-take and funding partner is a strong endorsement for the Pilgangoora Project and the Company. We are also delighted that they will be joining our share register as a strategic investor.

Click here to read the full Pilbara Minerals Ltd. (ASX:PLS) press release.