Singapore-listed Alliance Mineral Assets is on the verge of becoming the fourth lithium producer in Australia. Its mine, known as Bald Hill, is sited in Western Australia.
Alliance and its JV partner, Tawana Resources, have signed an offtake agreement to sell -- for about US$200 million -- at least 200,000 tonnes of high-grade lithium concentrate at a fixed price to Hong Kong-listed Burwill Holdings.
Australian research house Cannacord Genuity has just produced a report on both companies. Excerpts:
 This camp will house up to 150 men who will construct infrastructure for mining lithium concentrate at Bald Hill. Photo: Company Bald Hill JV partners Tawana Resources and Alliance Mineral Assets achieved a major milestone recently with the securing of product offtake and prepayment, which combined with a recent capital raising now sees the project effectively funded through development. With further de-risking of the project expected with the imminent maiden resource (including expected subsequent upgrades by mid’17) and feasibility study, Bald Hill’s key appeals will become more apparent – low capex start up, short lead time to production, good exploration upside and potential for a considerable mine life.
Offtake Agreement – strong pricing underpins solid operating margins |
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"Extremely bright future" |
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- Tjandra Pramoko, |
