Galaxy Resources Signs Off Take and Receives Payment of US$4.5 Million

Galaxy Resources Limited (ASX:GXY) announced that a second binding definitive agreement has been signed between another Chinese Offtake Customer, Mitsubishi Corporation and GMM.
As quoted in the press release:

Highlights

• Second definitive offtake agreement signed between General Mining, Mitsubishi Corporation and Offtake Customer
• Agreement to supply 15,000 tonnes of lithium concentrate for calendar year 2016 and 60,000 tonnes for 2017
• US$4.5 million pre-payment received by General Mining on behalf of joint venture with Galaxy
• Galaxy and General Mining to sell additional 15,000 tonnes of planned 2016 production not contracted by spot or auction process
• Initial 15,000 tonne spodumene concentrate shipment on schedule for September 2016
• Lithium carbonate pricing in China continues to be robust
• Galaxy receives first joint venture instalment of A$1.5 million from General Mining due 30 June 2016
• Galaxy makes paydown of A$1.05 million on its corporate debt facility from A$1.5m General Mining payment
• Acceptance level for the General Mining Takeover Bid currently at 31%

The final offtake agreement terms were as outlined in the binding Term Sheet announced 8 March 2016. The JV Partners have now banked a total of US$13.5 million in prepayments from these two customers and, in light of the continued robustness in lithium carbonate pricing since when the original offtakes were negotiated, they have also decided to retain 15,000 tonnes of 2016’s forecast production for a potential spot or auction sale process later this year.

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