Galaxy Resources Limited (ASX:GXY) has announced that it has executed binding long term offtake contracts with multiple customers throughout Asia. Galaxy Lithium Australia Limited, a wholly owned subsidiary of Galaxy, which owns the Mt Cattlin Project (“Mt Cattlin”) in Ravensthorpe, Western Australia has agreed to sell 100% of the planned production of lithium concentrate from Mt Cattlin for 5 years beginning in 2018. Pricing is on either a CIF (cost plus insurance and freight) or CFR (cost plus freight) basis and will be subject to an annual pricing review between Galaxy and its customers in Q4 of each calendar year. The parties have agreed the pricing for FY 2018. Annual volumes are subject to standard commercial terms with delivery on a +/- 10% basis.
Galaxy’s offtake partners are each leading and reliable producers of lithium carbonate (Li2CO3) and lithium hydroxide monohydrate (LiOH.H20) and are all key suppliers of lithium products and materials throughout Asia.
Galaxy Managing Director, Anthony Tse said the Company had experienced very strong interest from a wide range of current and new buyers after the consistent quality and delivery of production from Mt Cattlin throughout 2017, with the Company seeing significant increasing demand over the 5 year contract term.
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