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Mining

Pilbara Minerals crosses another milestone for Pilgangoora lithium project

This represents the final major environmental approval required to complete construction.

Pilbara Minerals Ltd (ASX:PLS) has received the works approval from the Department of Water and Environmental Regulation (DWER) for its Pilgangoora Lithium Project in Western Australia.

This represents the final major environmental approval required for the company to complete construction and facilitate the ongoing operations of the processing and ancillary plant.

All other key environmental and regulatory approvals were secured earlier this year with the approval of the mining proposal in May clearing the way for the start of major site construction works.

Pilbara is targeting the commencement of spodumene concentrate shipments in Q2 2018 at its stage-1, 2 million tonnes per annum (mtpa) plant.

The company has awarded a 7-year contract to Australian-owned Contract Power Group for the site power station construction and ongoing operations.

Interestingly, the initial work has already commenced on the stage-2 expansion to 5 mtpa.

Pilbara has also achieved financial close on its US$100 million senior secured bond.

All conditions precedent required for draw-down of the bond proceeds have now been satisfied, except customary requirement to first spend the required project equity proceeds, which is expected to occur in the current quarter.

READ NEXT: Pilbara Minerals signs landmark lithium offtake deal with China’s Great Wall Motors

Pilbara recently executed a lithium offtake deal with Great Wall Motors, one of China’s largest automotive manufacturers.

Under the deal, Great Wall will take a $28 million placement in Pilbara, which will give it a stake of around 3% in the company and will also provide up to $US50 million in debt funding.

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