Microsoft Word - GMM266 2016-07-12 Mt Cattlin offtake
OFFTAKE COMPLETED
US$4.5 MILLION PREPAYMENT RECEIVED
ASX ANNOUNCEMENT 12 July 2016
General Mining Corporation ABN: 95 125 721 075
ASX Code: GMM
Issued Capital: 318,397,526 shares
15,000,000 unlisted options
Share Price:
$0.795 per share
Market Capitalisation:
AUD$253.1M
Board of Directors Mr Michael Fotios Executive Chairman
Mr Alan Still
Non‐executive Director
Mr Michael Kitney
Non‐executive Director
Company Secretary
Ms Karen Brown
www.generalmining.com Address:
89 Burswood Road Burswood WA 6100
Telephone:
08 9227 1186
Facsimile:
08 9227 8178
Highlights
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Second definitive offtake agreement signed between General Mining, Mitsubishi Corporation and Offtake Customer
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Agreement to supply 15,000 tonnes of lithium concentrate for
calendar year 2016 and 60,000 tonnes for 2017
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US$4.5 million pre‐payment received by General Mining on behalf of joint venture with Galaxy
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General Mining and Galaxy to sell additional 15,000 tonnes of planned 2016 production into spot market
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Initial 15,000 tonne spodumene concentrate shipment on schedule for September 2016
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Lithium carbonate pricing in China continues to be robust
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General Mining pays first joint venture instalment of A$1.5 million to Galaxy due 30 June 2016
Corporate
General Mining Corporation Limited (ASX:GMM) ("General Mining") ("the Company") along with its Mt Cattlin project partner Galaxy Resources Limited (ASX:GXY) (GMM and GXY, together the " JV Partners") are pleased to announce that a second binding definitive agreement has been signed between another Chinese Offtake Customer, Mitsubishi Corporation and GMM. The final offtake agreement terms were as outlined in the binding Term Sheet announced 8 March 2016. The JV Partners have now banked a total of US$13.5 million in prepayments from these two customers and, in light of the continued robustness in lithium carbonate pricing since the original offtakes were negotiated, have also decided to retain 15,000 tonnes of 2016s forecast production for a potential spot or auction sale process later this year.
The Company has also now paid its first A$1.5 million quarterly instalment of the A$6 million per annum progress payment due on the Mt Cattlin Project, in accordance with the Acquisition and Development Agreement entered into with Galaxy Resources.
Offtake Agreement Details
GENERAL MINING CORPORATION ASX RELEASE - July 2016
On 8 March 2016, Galaxy and GMM announced the signing of term sheets with Offtake Customers in China for the sale of 60,000t of lithium concentrate at US$600/mt for 2016, and a volume commitment of 120,000t in 2017 with final pricing for 2017 to be confirmed in Q4 of 2016. The JV has now entered into definitive contracts for 45,000 tonnes for 2016, received 50% of the contract value as prepayments equal to US$13.5 million, and contracted a total of 120,000t of 2017 production, subject only to final pricing during Q4 2016.
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Further inquiries:
Michael Jardine
Business Development Manager Tel: +61 8 6241 1832 or
+61 424 615 047
[email protected]
Jon Snowball FTI Consulting
Tel: +61 2 8298 6100 or
+61 477 946 068
[email protected]
Forward‐looking statements
This announcement includes forward‐looking statements. Forward‐looking statements are only predictions and are subject to risks, uncertainties and assumptions which are, or may be, outside the control of General Mining Corporation Limited. Actual values, results or events may be materially different to those expressed or implied in this announcement. Although General Mining Corporation Limited believes that the expectations reflected in such forward‐ looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements and no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward‐ looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of General Mining Corporation Limited, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission. General Mining Corporation Limited undertakes no obligation to update publicly or release any revisions to these forward‐looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly you should not place undue reliance on any forward looking statement.