Pilbara Minerals Announces Offtake Agreement and $28m Equity Completed with Great Wall

Australian lithium developer Pilbara Minerals Limited (ASX: PLS) has announced that it has finalised a binding off-take agreement and equity subscription with Great Wall Motor Company, one of China’s largest automotive manufacturers, to underpin the Stage 2 expansion of its 100%-owned Pilgangoora Lithium-Tantalum Project in Western Australia.

The off-take agreement – encompassing 75,000tpa and up to 150,000tpa of Stage 2 chemical grade spodumene concentrate in return for Stage 2 debt financing support, and a $28 million equity subscription for Pilbara shares, which has now successfully completed – represents the first direct investment by an automobile manufacturer into an Australian upstream supplier of lithium raw materials.

The landmark agreementsrepresent a major endorsement of Pilbara Minerals as an emerging world-class, low-cost supplier of lithium raw materials based on the development of the Pilgangoora deposit, which is one of the world’s largest lithium-tantalum hard rock resources with Measured, Indicated and Inferred Resources of 156.3Mt @ 1.25% Li2O (lithia) and 128ppm Ta2O5.

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