Piedmont Lithium (ASX:PLL, OTC:PLLTL) Inc has taken a key step towards becoming a global supplier of lithium resources to the US supply chain after receiving the first payment for NAL's inaugural lithium concentrate shipment.
The company has received a US$31.6 million partial payment for the sale of 15,000 dry metric tonnes of 5.4% lithium concentrate on a free-on-board (FOB) vessel basis to a major international trading company.
The vessel is scheduled to be loaded for the shipment in mid-September.
More shipments to come
"This is a significant day for Piedmont Lithium (ASX:PLL, OTC:PLLTL) as we announce the first shipment of lithium concentrate under our offtake agreement with NAL and the receipt of a prepayment, which significantly increases our cash position," said Piedmont president and CEO Keith Phillips.
"We look forward to the additional Piedmont shipments and JV shipments planned for 2023, and we expect sales from Piedmont shipments to help fund our strategic initiatives while reducing our need to raise equity in the market.
"Additionally, we acknowledge the board-level changes of our partner, Sayona Mining.
“We would like to thank Brett Lynch for his vision, which enabled Piedmont and Sayona Mining to successfully acquire and restart the NAL operations, and we look forward to continued success as we welcome James Brown as the interim CEO of Sayona Mining."
Piedmont’s offtake and joint venture partner North American Lithium (NAL) began commercial production in March this year and delivered its first JV shipment of 20,500 dry metric tonnes to a third party in early August.
Piedmont expects to receive the full balance of its 2023 offtake allocation, representing 56,500 dry metric tonnes of lithium concentrate, with the balance to be sold by the JV.
At present, PLL holds a cash reserve of about US$100 million, representing a strong balance sheet that will enable the company to pursue its goals.