Pilbara Minerals
(ASX:PLS) has been financially backed by one of China’s largest automotive manufacturers, the Great Wall Motor Company, for its flagship lithium project in WA.
It comes as the lithium and tantalum producer inked a binding agreement for its Stage 2 Pilgangoora expansion, with the ‘Great Wall’ (Great Wall’s subsidiary, Sunny Development).
As part of the agreement, Pilbara Minerals will receive a $28 million equity investment and have access to US$50 million in debt finance. Great Wall also has the ability to secure 75,000 tonnes per annum of its offtake, with a total offtake of 150,000 tones per annum.
At the end of October, Great Wall will own around 3.5 per cent of Pilbara Minerals shares.
Shares in Pilbara Minerals
(ASX:PLS) closed 1.30 per cent higher yesterday to 55 cents.