The Company’s Board has endorsed the continued expansion of its 100%-owned Pilgangoora Lithium Tantalum Project i.e. Pilgangoora Project in Western Australia’s Pilbara region, Australian lithium producer Pilbara Minerals Limited is pleased to recently announce which is subject to obtaining necessary regulatory approvals and securing the balance of project funding, the Final Investment Decision (FID) for the Stage 2 expansion to 5Mtpa.
It follows the successful completion of the Definitive Feasibility Study, from the customer base to continue to expand the Pilgangoora Project’s operations, 100% of the Stage 2 offtake being sold to high quality customers and general support. Including debt and/or offtake prepayment funding from customers linked to accessing Stage 2 product, Pilbara Minerals continues to make progress with a number of funding alternatives for Stage 2 as well as other alternate finance structures.
The offtake counterparties and is targeted to be finalized during the current quarter and the balance of the financing is the subject of continuing engagement with both bondholders for their consent. To allow it to meet its objective of commissioning Stage 2 from the December quarter, 2019, Stage 2 project works are continuing with the company having already placed some long-lead orders for major equipment. To be placed in the coming weeks further long-lead equipment orders are expected. Also, well underway is the detailed engineering for Stage 2.
The Company’s second shipment of spodumene concentrate departed Port Hedland in the second half of October with 6.3% Li2O onboard, as further confirmation of Pilbara Minerals’ continued success with the Stage 1 development. With the company making good progress in the continued ramp-up and optimization of production, production from the Stage 1 Pilgangoora Project continues as planned.
With production capacity set to grow beyond 800ktpa of high quality spodumene concentrate, final Investment Decision (FID) paves way for the continued expansion of the Pilgangoora Lithium Tantalum Project. Subject to securing necessary approvals and the balance of project funding the Pilbara Minerals’ Board has resolved to approve the Stage 2 expansion of the Pilgangoora Lithium-Tantalum Project.
Following completion of the balance of the Pilgangoora Lithium-Tantalum Project’s financing and receipt of final environmental approvals major site works will commence. With high-quality customers POSCO, Ganfeng Lithium and Great Wall Motor company 100% of Stage 2 offtake is already placed. Stage 2 long-lead equipment orders and detailed engineering now underway and Ramp-up of Stage 1 production and plant optimisation continues as planned. With 6.3% Li2O in the second vessel further confirmation of high-quality products shipped.
Pilbara Minerals Ltd (ASX: PLS) traded at a market price of $0.842 as at November 12, 2018 and the stock has seen a performance change of 406.06% since inception.
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