March 19, 2019

Chimata signs $9.5m finance, offtake facility for Kamativi lithium project

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Transamine Trade and the Kamativi Tailings Company (KTC) have signed a term sheet for a $9.5-million finance and offtake facility for concentrate produced from the Kamativi tailings lithium project, in Zimbabwe.

The proceeds will be used for the construction of the Phase 1 processing plant to be built for the project, as well as for working capital.

As part of the agreement’s terms, KTC will produce a +6% lithium oxide spodumene concentrate to be sold to Transamine, which will have the right to 150 000 t of concentrate produced from the Phase 1 processing plant.

KTC chairperson John McTaggart said the company “looks forward to developing a long-lasting and beneficial relationship with Transamine over the years to come”.

In the meantime, the project team is looking to finalise all documentation to continue the rapid advancement of the project and construction of the Phase 1 processing plant to bring the project into production as quickly as possible.

Canadian strategic metals company Chimata Gold’s local Zimbabwean partner holds a 60% equity stake in KTC, which is a joint venture with the remaining 40% of the equity being held by Kamativi Tin Mines. — Mining Weekly

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