Altura Mining (ASX:AJM) has continued the growth spurt in lithium companies as end users look to lock in future production as China based group Lionergy signed an agreement for future offtake of lithium spodumene concentrate produced from Altura's high grade Pilgangoora Lithium Project.
Lionergy has also agreed to an investment of A$3,000,000 through a placement at $0.081 each to support the off take LOI.
The agreement provides for Lionenergy to take a minimum of 100,000 tonnes per annum and up to 150,000 tonnes per annum of future lithium spodumene concentrate produced from Pilgangoora.
Under the agreement there is also scope for further investment and funding by Lionenergy for the Pilgangoora project.
A formal share subscription agreement and settlement is planned for early March 2016.
The additional funds raised will used for completion of the Feasibility Study currently scheduled for completion by the end of March 2016 and acceleration of the proposed mining development.
Lionergy is a China based company highly specialized in the lithium industry and covers spodumene exploration, spodumene mine development, spodumene concentrate sales and distribution, Li2CO3 and LiOH manufacturing and sales, lithium metal manufacturing, cathode materials manufacturing for Li-ion batteries.
Altura has 192 million options exerciseable at $0.02 before 30 June 2016, the exercise of these shares would generate a further $3.8 million to take Altura to a decision to mine at Pilgangoora.
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