- AVZ Minerals (AVZ) has signed its first offtake agreement for lithium to be produced at its Manono Project in the Democratic Republic of Congo
- The company secured the deal with GFL International, a subsidiary of China's largest lithium compound producer Ganfeng Lithium
- GFL International will purchase up to 160,000 metric tonnes per annum of spodumene concentrate for an initial five-year term and has the option to extend the agreement for another five years
- The company is negotiating other offtake arrangements for lithium, tin and tantalum products to be produced at Manono and hopes to finalise these agreements in the coming months
- AVZ shares have jumped 17.4 per cent and been trading at 11.5 cents
AVZ Minerals (AVZ) has signed its first offtake agreement for lithium product to be produced at its Manono Project in the Democratic Republic of Congo.
The company secured the deal with GFL International, a subsidiary of China's largest lithium compound producer, Ganfeng Lithium.
GFL International will purchase up to 160,000 metric tonnes per annum of spodumene concentrate. AVZ will ramp up to this volume of supply from the third year onwards.
The agreement has an initial five-year term and includes the option to extend the arrangements for another five years.
Managing Director Nigel Ferguson said the company is very pleased with the deal and that it is continuing other offtake negotiations.
"GFL has signed on to take 30 per of the Manono Project’s initial saleable spodumene concentrate 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 spodumene concentrate offtake agreement with GFL will also greatly assist the company in meeting any conditions precedent that are required for our prospective financiers," he added.
AVZ Minerals holds a 60 per cent interest in the lithium-tin project, Congolese state-owned enterprise La Congolaise d’Exploitation Minière SA holds a 30 per cent interest and Dathomir Mining Resources SARL holds the remaining interest.
The surrounding Manono Extension Project is wholly-owned by AVZ Minerals.
AVZ shares have jumped 17.4 per cent and been trading at 11.5 cents at 10:47 am AEDT.