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Core Lithium has finalized the termination of its long-standing offtake agreement with Yahua International through a legally binding deed of release. As part of the settlement, Core will pay $US2 million in cash, which will be drawn from its existing reserves.

The original offtake agreement, first signed in 2019 and later updated in 2022, covered the supply of spodumene concentrate from Core's Finniss lithium project. Located approximately 88km southwest of Darwin Port in the Northern Territory, Finniss represents a major part of Core鈥檚 lithium strategy.

The termination of the agreement is seen as a strategic move by Core, aimed at increasing flexibility and opening the door to new funding opportunities. According to Core chief executive officer Paul Brown, the decision clears a significant legacy issue and sets the stage for advancing plans to potentially restart operations at Finniss. 鈥淲e appreciate the constructive approach of Yahua in reaching this agreement, which reflects the long-standing relationship between our two companies,鈥� Brown said. 鈥淭his settlement allows for greater flexibility in securing strategic funding to support the future restart of the Finniss lithium operation, which remains subject to board approval.鈥�

Core鈥檚 Finniss operation has faced several hurdles over the past year. In late 2023, the company suspended early-stage works at BP33鈥攁n underground project within the broader Finniss area鈥攄ue to complications caused by wet-season mining conditions and a corporate focus on cost reduction. This was followed by a suspension of mining at the Grants open pit in January 2024. The decision was made in response to challenging market conditions, including a global lithium oversupply and increasing exports from countries like China.

Despite these setbacks, Core has remained committed to restarting the Finniss operation. The company reported that the restart study is advancing as planned and is expected to be completed by the June 2025 quarter.

In a March update, Core emphasized that the infrastructure at Finniss remains in excellent condition, with over $250 million already invested across the Grants and BP33 sites. The restart study aims to make the most of existing infrastructure while simplifying future mining and processing activities to enhance productivity.

鈥淭he work completed so far has reinforced the long-term potential of the Finniss operation,鈥� Core said. 鈥淥ur focus is on optimizing what we鈥檝e already built and ensuring that any future restart is both efficient and economically sustainable.鈥�