PLS signs off-take agreement with Shandong Ruifu

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Pilbara Minerals Investor Update
Pilbara signs off-take agreement to supply Direct Shipping Ore to leading Chinese lithium group
Innovative off-take deal will see mining commence at Pilgangoora ahead of schedule in Q2 2017 with first ore deliveries targeted by mid-year, bringing forward project revenues and cash-flow

HIGHLIGHTS:

• Off-take agreement signed with Chinese lithium carbonate (Li2CO3) producer Shandong Ruifu Lithium Co. Limited (Shandong Ruifu) for the supply of crushed but unprocessed Direct Shipping Ore (DSO).
• DSO to be supplied, at Pilbara’s election, from either its 100%-owned Pilgangoora Lithium-Tantalum Project in Western Australia, or the adjoining higher grade Lynas Find Lithium Project (subject to completion of its acquisition by the Company).
• The innovative agreement is for the supply of 1.9Mt of run-of-mine (ROM) 1.5% lithia ore over approximately a 2-year term, targeting first deliveries from July 2017.
• The agreement includes a US$10M pre-payment by Shandong Ruifu.
• Off-take pricing is fixed at an attractive $US price per dry metric tonne of ore to Pilbara (1.5% Li2O, CIF China basis) delivering a healthy operating margin, with final pricing outcomes subject to certain credits or penalties as determined by the shipped grade (minimum specification, 1.4% Li2O).
• Shandong Ruifu is an established supplier of lithium products and materials to the fast-growing lithiumbattery industry in China, producing lithium carbonate products in East China, with lithium hydroxide production planned in the near future.
• Pilbara is also negotiating a separate off-take agreement for the supply of spodumene concentrate to Shandong Ruifu, which is hoped to be finalised shortly, in addition to the existing off-take agreement with General Lithium Corporation for 140,000tpa of spodumene concentrate.
• The ROM off-take agreement represents a mutually beneficial outcome, providing significant early stage project revenues for Pilbara during the construction and ramp-up phase and providing for the early delivery of lithia units for Shandong Ruifu to assist in their production expansion plans.

Click here to view the announcement.



Pilbara Minerals Limited
130 Stirling Highway, North Fremantle WA 6519
Phone: +61 8 9336 6267 |  Fax: +61 8 9433 5121
www.pilbaraminerals.com.au
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