The funding will be provided on completion of relevant conditions including the release of a definitive feasibility study.
Canadian company Chimata Gold and its subsidiary Zimbabwe Lithium own 60% of the Kamativi Tailings Lithium Project in Zimbabwe, with the remaining 40% owned by Kamativi Tin Mines.
The funding will be used in the construction of the Phase 1 processing plant and for working capital.
Kamativi Tailings intends to produce min 6% lithium spodumene concentrate at the project, and Transamine will have the right to 150,000 tonnes of phase 1 production.
Phase 1 production is scheduled to start in the third quarter of 2019 with a production rate equivalent to 55,000 tonnes per year of lithium concentrate. No end date for phase 1 was specified.
The second phase of the project is intended to produce 169,000 tpy of similar concentrate beginning in the first quarter of 2020. This will require investment of $33 million.
The agreement establishes that the lithium spodumene price will be set according to international market terms for min 6% lithium spodumene concentrate, although no price was specified.
Fastmarkets’ most recent assessment of the price of lithium spodumene min 5-6%, cif China, was $600-750 per tonne on December 26 last year, down from $650-800 per tonne on November 28.
