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FinanceRock Tech Lithium signs binding long-term spodumene offtake deal with Swiss trader Transamine
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Rock Tech Lithium has signed a binding long-term offtake agreement with Swiss commodity trading firm Transamine for spodumene concentrate from its Georgia Lake project in Ontario, Canada. The initial seven-year contract, with an option for five additional years, starts at 50,000 dry tonnes in the first year and increases to 100,000 dry tonnes annually thereafter. Deliveries are expected to begin in 2028, subject to a definitive feasibility study. The deal includes a potential development prepayment facility of up to $80 million, with interest at three-month CME Term SOFR plus 2.95%. Pricing references the Fastmarkets benchmark for spodumene concentrate, with a floor price mechanism. The agreement also allows for transitioning deliveries to battery-grade lithium hydroxide or carbonate if Rock Tech's Red Rock Lithium Converter requires concentrate.
Source report
Source: Mining Technology Author: Shree Mishra
Rock Tech Lithium has entered into a binding long-term offtake agreement with Transamine, a Geneva, Switzerland-based commodity trading firm, for the supply of spodumene concentrate from its wholly owned Georgia Lake project in Ontario, Canada.
Key Terms of the Agreement
- Duration: Initial seven-year period, with an option for up to five additional years.
- Volumes:
- First year: 50,000 dry tonnes (dt)
- Subsequent years: 100,000 dt per annum
- Tolerance: Plus or minus 10% in favour of Rock Tech
- Commencement: Deliveries are scheduled to begin in 2028, subject to delivery terms and any revisions following the definitive feasibility study (DFS).
Pricing and Financial Provisions
- Benchmark Price: Fastmarkets benchmark price for spodumene concentrate (minimum 6% lithium oxide, CIF China), with adjustments for actual delivered grade.
- Floor Price Mechanism: Included, subject to terms related to resale markets, inflation adjustment, and project financing.
- Development Prepayment Facility: Up to $80 million to support the Georgia Lake Project.
- Interest rate: Three-month CME Term Secured Overnight Financing Rate plus 2.95% annually.
- Repayment: Through shipments over a two-year period from first delivery.
- Finalisation: Subject to completion of the DFS and standard conditions including financing, permitting, and satisfactory due diligence.
Future Flexibility
The agreement allows for transitioning some or all deliveries into offtake for battery-grade lithium hydroxide monohydrate or lithium carbonate, should Rock Tech's Red Rock Lithium Converter require concentrate. This would require mutual agreement on conversion mechanisms, product specifications, pricing, and schedules.
Executive Comment
Rock Tech CEO Mirco Wojnarowicz stated:
"This agreement demonstrates how Rock Tech is turning critical minerals ambition into execution. Together with the prepayment facility, the agreement brings us another step closer to building an integrated mine-to-converter platform and supporting a stable, secure supply of battery-grade lithium for Canada and its allies."
Related Development
In February 2025, Rock Tech signed a binding business combination agreement with Swiss junior mining company Arcore to merge their subsidiaries and establish a new European entity named NewCo.
Deliveries of spodumene are currently scheduled to commence in 2028. Credit: BJP7images/Shutterstock.com.
This article was originally created and published by Mining Technology, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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Rock Tech signs spodumene supply deal with Transamine