Rock Tech Lithium (TSXV: RCK) Signed a purchase agreement with a Geneva-based company Transamine To concentrate spodumene from the Georgia Lake Project in northern Ontario.
Georgia Lake is one of Rock Tech’s key lithium assets and aims to provide feedstock for the planned Red Rock converter. The deposit hosts an indicated grade of 0.82% Li₂O, based on work completed in July 2022. The seven-year binding agreement maintains the company’s ability to process lithium in Ontario into battery-grade chemicals at the plant. Deliveries are expected to begin in 2028 with an option to extend for up to an additional five years. The deal covers up to 100,000 dry metric tons of spodumene concentrate per year.
“The agreement brings us one step closer to building an integrated mine-to-converter platform and supporting a stable and secure supply of battery lithium for Canada and its allies,” said Mirko Wojnarovic, CEO of Rock Tech.
Output expectations
Transamine deliveries will start at 50,000 dry metric tons in the first year, increasing to 100,000 tons each year thereafter. Orders carry a tolerance of ±10% in the company’s favor. Pricing will follow Fastmarkets’ 6% Li₂O standard, with grade adjustments and a qualifying minimum price subject to resale markets and inflation provisions.
Delivery schedule remains subject to change. The two companies will reconsider the deal once the final feasibility study is completed.
Establishment framework
Rock Tech says the agreement includes a framework to facilitate development prepayment of up to $80 million to support the Georgia Lake project. Interest on the advance will be accrued at the CME term of three months SOFR plus 2.95%.
As with the delivery schedule, final terms will be determined after a final feasibility study. Access to this facility depends on full project equity financing, permits, access to land, and due diligence.
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