Mustpow To throw a spanner in the works that hypotheses isn't...

Mustpow

To throw a spanner in the works that hypotheses isn't really even relevant as that scenario is covered by a memorandum of understanding not a binding off take agreement unless now GAM or MIN have make their decision of first right of refusal based on a possibility rather than an actual off take price which is absurd and to tell you the truth I'm having difficulty understanding if the binding off take agreement is even binding without first the MOU for the downstream process becoming a reality if you read this paragraph of the conditions precedent under the Off-take Agreement.

"The satisfaction or waiver of all the conditions contained in Subscription Agreement and the MOU."

And then when you read the memorandum of understanding in the ASX release in regards to the joint venture you get this chicken before the egg scenario.

"The binding downstream processing joint venture MOU is conditional upon satisfaction or waiver of the conditions precedent to the Offtake Agreement"





Binding Off-take The binding off-take agreement is for over 40 per cent of the anticipated annual production of spodumene concentrate from the Pilgangoora Project (approximately 140,000 tonnes per annum). The agreement has an initial 6-year term with an option to extend for a further four years.

Pricing is to be set on a 6-month basis by a pricing mechanism (formula) based on the price of lithium carbonate, as defined by term contracts to substantial cathode makers in the Chinese market. The carbonate price reference will be determined via a combination of Chinese import and export prices of Lithium Carbonate, that are published via reputed websites for commercial access. The off-taker is well positioned to take advantage of the strength in demand for lithium raw materials in key Asian markets.

Conditions precedent under the Off-take Agreement include:

 All relevant PRC (Peoples Republic of China) government approvals;

 The waiver or non-exercise of the right of first refusal to the spodumene concentrates held by Global Advanced Metals Wodgina Pty Ltd under earlier agreements to which Pilbara Minerals is a party; and,

 The satisfaction or waiver of all the conditions contained in Subscription Agreement and the MOU.

In addition to the conditions precedent:

 Pilbara’s obligations to supply product to the off-take party is subject to a final investment decision being made for the development of the Pilgangoora mine and supporting infrastructure, receipt of all necessary approvals and available funding for the development of the Pilgangoora project (“Conditions Subsequent”); and

 Pilbara is required to commence construction of the mine within one year of satisfaction of the Conditions Subsequent.