Ann: Trading Halt, page-209

Level 2
, 2
3
Barrack
Street
Perth
WA 600
0
PO Box
Z5369
St. George’s Terrace
WA 6
831
T +61 8 9488 5100
F +61 8 9488 5199
cosec
@alturamining.com
alturamining.com
Altura
Mining Limited
ABN 39 093 391 774
ASX ANNOUNCEMENT
| 9
November
2018
LONG T
ERM OFFTAKE AGREEMENT SECURED
WITH LEADING GLOBAL LITHIUM PRODUCER
■
Binding Offtake Agreement with GFL
International Co., Limited (a wholly
owned
subsidiary of Ganfeng Lithium) a
leading global battery material
s
producer
■
Supply to commence in 2018
; with a minimum of 70,000 tonnes per
annum from 2019 until
the end of 2021 with potential
extension
s for
up
to a further 10 years
■
Variations agreed to existing offtake arrangements with Shaanxi J&R
Optimum Energy
Altura Mining Limited (ASX: AJM) (“Altura” or the “Company” is pleased to
announce
a new binding
offtake
agreement
(BOA)
with
GFL International Co., Limited (
GFL
), a wholly owned
subsidiary of leading
global lithium producer in Ganfeng Lithium
.
The new agreement provides Altura with a more diverse customer base and locks in 100% of planned
production from the recently commissioned flagship Altura Lithium operation located at Pilgangoora in
Western Australia.
GFL is a leading global battery materials producer that is continuing to expand both its lithium carbonate
and lithium hydroxide production capacity.
The new BOA further
diversifies GFL’s existing supplier base
and pr
ovides
the
option
to increase supply t
hrough
access to 50% of the Stage 2 expansion
production
from
the Altura Lithium operations.
Altura has also reached agreement with existing offtake partner in Shaanxi J&R Optimum Energy Co.,
Ltd
(JRO) whereby JRO
will reduce its current BOA commitment from a minimum of 100,000 tpa to a
minimum of 50,000 tpa from 2019 onwards.
This will
provide Altura with more flexibility as JRO aims to
conclude
its
current
restructuring.
Altura is also provided with an opp
ortunity to expand
its
existing
customer base with the removal of
JRO’s
rights
to additional tonnage produced.
Altura Managing Director James Brown said the new agreements would underpin
production and should
remove any offtake uncertainty.
“
Gan
feng
is one of the largest
and most respected lithium companies in the world and an offtake
agreement with them is further proof of the quality of the product we are producing from the Altura Lithium
operations,” he said.

Altura Mining Limited
– ASX
Announcement
– 9 November
2018
Page
2
of
3
“The terms of agreement mirror the floor price component of our existing offtakes which provides us with
significant security
while the agreed pre-
payment provides a healthy working capital buffer during the
ramp
-up
phase
.”
“The revised agreement with JRO together with the broadening of Altura’s customer base with Ganfeng’s
commitment significantly addresses any implications to the offtake agreement from JRO’s restructuring
activities.
”
“We are producing a high-
grade product that is highly sought after.
We continue to field inquiries regarding
offtakes which is testament to the quality of the Altura lithium concentrate and evidence there is still strong
long-
term
global
demand.”
Key
Te
rms
of BOA –
GFL
International Co.
, Limited (GFL)
▪
Minimum of 7
0,000 dry metric tonnes (dmt) per annum of 6% grade spodumene concentrate
(SC6.0) with minimum 8
,000 dmt commitment in 2018;
▪
Term of BOA current to 31 December 2021
with a further 5 year extension at
GFL
election plus
an additional 5 year extension by mutual agreement
;
▪
US$11 million pre-
payment on 2019 shipped cargoes;
▪
Minimum price of US$550 dmt (FOB equivalent) based on Li
2
0 content per dmt on 6% Li
2
0 until
end of 2020;
▪
Maximum price of US$950 dmt (FOB
equivalent)
until end of 2020
;
▪
CIF p
ricing based on agreed formula
incorporating
published reference pricing weighted for
lithium carbonate
and lithium hydroxide; calculated quarterly in arrears;
▪
GFL
option to purchase a
ny additional
Stage 1
spodumene concentrate produced;
▪
GFL option to increase supply via access to 50% of spodumene concentrate produced as part
of Stage 2 expansion operations.
Key
Revised Terms of BOA –
Shaanxi J&R Optimum Energy
Co.
, Ltd
(JRO)
▪
Minimum of 50,000 dry metric tonnes (dmt) per annum of 6% grade spodumene concentrate
(SC6.0) with no tonnage commitment in 2018;
▪
Removal
of rights of any additional spodumene co
ncentrate produced by Altura Lit
hium;
▪
Any additional spodumene concentrate will be available for purchase by JRO upon mutual
agreement basis;
▪
All other key terms of existing
agreement remain uncha