Core Lithium settles Yahua offtake agreement
Key points
- Legacy offtake agreement with Yahua terminated
- US$2 million cash settlement reached
- Termination provides strategic options for potential Finniss restart
Full summary
Core Lithium Ltd (ASX:CXO) has settled the legacy offtake agreement with Yahua International Investment and Development Co. (Yahua) in relation to the sale of spodumene concentrate from the Finniss Lithium Operation. The company signed the original spodumene concentrate agreement with Yahua in 2019, which was later updated with a supplementary agreement in 2022. Yahua and Core have now agreed to terminate the offtake agreement through a comprehensive, legally binding deed of release. As part of the settlement, Core has agreed to pay US$2 million in cash, which can be settled from the company's current cash reserves. The termination of this legacy offtake agreement provides Core with greater scope and opportunity for securing strategic funding sources to support a potential future restart of the Finniss Lithium Operation, which remains subject to Board approval. The Finniss Restart Study continues progressing well and is on track for completion in the June quarter of 2025.
Outlook
The termination of the Yahua offtake agreement provides Core Lithium with greater strategic flexibility and options to secure funding for a potential future restart of the Finniss Lithium Operation, which remains subject to Board approval.
Summary generated by a large language model. Please interpret with care.