Prospect Resources

AVZ Minerals has secured a strategic, long-term offtake partner agreement with Yibin Tianyi Lithium Industry. The Company and Yibin Tianyi have signed a binding offtake agreement for the supply of spodumene concentrate (SC6) from the Manono Lithium and Tin Project.

Yibin Tianyi is a leading global battery materials producer that is continuing to expand its lithium hydroxide production capacity as a key participant in the supply chain of Contemporary Amperex Technology (CATL), the world’s largest lithium-ion battery maker.

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AVZ’s MD, Nigel Ferguson, said:

“We are very pleased to conclude our discussions with Yibin Tianyi and to sign another binding offtake agreement for SC6 to a Chinese converter.”

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“This agreement takes our SC6 binding offtake commitments to more than 80% of the Project’s annual SC6 production, which is a massive endorsement for the Manono Project and one that satisfies an important condition precedent for our prospective project financiers.”

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“At present, we are seeing buoyant market conditions with reported SC6 prices in China increasing circa 30% in the first quarter of the year while during the same time the LME cash tin price has surged circa 30% boding well for the Manono Project’s Optimised Definitive Feasibility Study which is due for completion next quarter.”

“Positive market sentiment is greatly assisting our negotiations and while we are not compelled to commit to further forward sales, we are continuing to explore strategic opportunities for our offtakes in both traditional and emerging lithium markets including Europe, US and India.”