On 8 March 2016, General Mining Corporation Ltd, along with its project partner Galaxy Resources Limited, announced the signing of two binding Term Sheets with two China based buyers for the sale of 60kt of spodumene concentrate (USD 600/t) in 2016, and a further 120kt in 2017 (subject to price agreement in the December quarter 2016) from the Mt Cattlin mine in Western Australia.
Completed Offtake agreement details
The Company is pleased to announce that it has now signed a binding tri‐party offtake agreement with one of the offtake parties, and GMM’s exclusive selling and settlement agent, Tokyo based Mitsubishi Corporation. The terms of the offtake agreement are consistent with the terms of the binding Term Sheet announced on 8 March 2016. For clarity, this completed agreement is for the sale of 30,000 tonnes of spodumene concentrate in 2016 at a price of USD 600/tonne, 50% of which was payable in advance.
The Company is now pleased to announce that it has received the USD 9 million pre‐payment under the offtake agreement. This payment significantly strengthens the Mt Cattlin Project’s working capital position as the operation progresses through its staged ramp up through to December 2016.
Discussions continue with the other Chinese customer which requested a visit to Mt Cattlin before completing the final offtake documentation. Having obtained visas, a delegation from that customer and Mitsubishi Corporation visited Mt Cattlin last week and final discussions are now taking place.
Operational Update
Activity at Mt Cattlin continues to progress with first tantalum production achieved on 16 May 2016, fed from existing crushed ore stockpiles. The coarse rejects from this process (containing the lithium) are being stockpiled ready for activation of the DMS circuit next month.