AVZ Minerals Limited (ASX:AVZ) has secured a strategic, long-term offtake partner with GFL International Co. Limited (GFL), a subsidiary of China’s largest lithium compounds producer, Ganfeng Lithium Co Ltd.
AVZ’s Managing Director, Nigel Ferguson, said the company and GFL have signed an offtake agreement for an initial five year term and with an option to extend for a further five years, for spodumene concentrate (SC6) from the Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC).
GFL is a leading global battery materials producer that is continuing to expand both its lithium carbonate and lithium hydroxide production capacity. Further details regarding Ganfeng Lithium are outlined below.
We are very pleased to finalise these discussions with GFL and to sign our first lithium offtake agreement,” Mr Ferguson said.
“The fact we have signed our first offtake agreement with China’s largest lithium compound producer just reinforces our belief that the Manono Project is world- class.
“GFL has signed on to take 30% of the Manono Project’s initial saleable SC6 yearly tonnage, which is a massive endorsement for our project.
“Over the coming months, I look forward to finalising other offtake agreements which are currently under negotiation, not only for our lithium products but also for our tin and tantalum materials.
“This SC6 offtake agreement with GFL will also greatly assist the company in meeting any conditions precedent that are required for our prospective financiers.
“I look forward to updating our shareholders and the market with respect to the company’s financing options for the Manono Project early in the New Year.”