Core Lithium (ASX:CXO) has terminated its legacy offtake agreement with Yahua International Investment and Development Co regarding the sale of spodumene concentrate from the Finniss Lithium Operation. The original agreement, established in 2019 and updated in 2022, has been dissolved through a legally binding deed of release. As part of the settlement, Core Lithium will pay US$2 million in cash from its existing reserves.
According to CEO Paul Brown, the Finniss Restart Study is progressing as planned and is expected to be completed in the June quarter of 2025. Brown acknowledged the constructive approach from Yahua during negotiations. Terminating this agreement provides Core Lithium with increased flexibility in pursuing strategic funding options to support the potential restart of the Finniss Lithium Operation, pending board approval. The Finniss Lithium Operation is located on the Cox Peninsula, 88km from the Darwin Port in the Northern Territory.
