Altura Mining has signed a letter of intent (LoI) for China-based Lionergy to purchase spodumene concentrate each production year from Altura's Pilgangoora Lithium project in Western Australia.
Under the LoI, Lionergy will purchase a minimum of 100,000t and up to 150,000t of spodumene concentrate for 20 years.
The companies have also agreed to hold talks regarding possible investment and other project funding opportunities by Lionergy and its associates in the project.
The discussions are aimed at expediting construction of the mine and processing plant.
Should Lionergy choose to not purchase the complete concentrate in any one year, Altura may place tonnage in excess of Lionergy's requirements with other customers.
Altura will offer any tonnage produced above 150,000t in a production year to Lionergy on agreed terms.
Starting the contract is conditional on Altura securing the necessary regulatory approvals, in addition to a decision to proceed mining within three years of the signing date.
Altura's Pilgangoora Lithium project has been confirmed as a significant new discovery, and increased in size with a JORC mineral resource estimate of 25.2 million tonnes.
The project is a hard rock spodumene deposit with shallow, thick and high-grade lithium intercepts and is 100%-owned by Altura.
The company is also working to develop the project and is seeking the right equity investor/offtake partner to maximise the project.