General Mining announce $36m offtake deal

General Mining announce $36m offtake deal

General Mining (ASX:GMM) and its joint venture partner Galaxy Resources (ASX:GXY) have signed an offtake agreement for the Mount Cattlin project in Western Australia.

The offtake agreement with two Chinese buyers for 60,000 tonnes of spodumene concentrate at US$600 per tonne is worth an estimated $36 million.

The Australian joint venture partners have also agreed to sell a further 120,000 tonnes to the same Chinese buyers in 2017, although the price will be based on market conditions in Q4 2016.

General Mining executive chairman Michael Fotios said: “These sales represent a tremendous step forward for the Mt Cattlin operation and validate the work General Mining has done to re-optimise the process flow sheet.”

Fotios added that General Mining, who will be the world’s largest independent supplier of spodumene concentrate in 2016, is well positioned to meet the lithium and cathode markets future demands.