Rock Tech Lithium has entered into a binding offtake agreement with Geneva-based commodity trading house Transamine SA to purchase spodumene concentrate from its Georgia Lake project in Ontario. The seven-year contract, which is set to begin in 2028, secures delivery of up to 100,000 dry metric tonnes per year of concentrate, with initial volumes ramping from 50,000 tonnes in the first year to the full annual tonnage thereafter. The agreement includes a ±10% tolerance in favor of Rock Tech and allows for an extension of up to five additional years by mutual consent.
In parallel, the transaction establishes a framework for a development prepayment facility of up to US$80 million to support the construction and ramp-up of the Georgia Lake operation. This facility will carry interest at three-month CME Term SOFR plus 2.95% per annum, accruing quarterly, and will be repaid by set-off against concentrate deliveries over a 24-month period following the first shipment. Any remaining balance at the end of that period would be payable in cash. Final terms and the exact funding amount will be agreed once the project’s definitive feasibility study is complete and key conditions precedent are met.
Pricing under the offtake references the Fastmarkets spodumene concentrate benchmark (minimum 6% Li₂O, CIF China), adjusted for delivered grade, and incorporates a qualified floor price with provisions for inflation adjustments and project-financing.
The agreement is structured to support Rock Tech’s integrated Ontario mine-to-converter strategy. If the company elects to supply its planned Red Rock Lithium Converter instead of selling raw concentrate, the contract can be amended to cover battery-grade lithium hydroxide monohydrate or lithium carbonate, with Transamine’s take-or-pay commitment maintained under the revised terms.
This arrangement secures a long-term commercial pathway for Georgia Lake’s output while preserving flexibility for downstream conversion. Rock Tech expects the partnership to strengthen its financing profile and advance its goal of supplying battery-grade lithium chemicals in North America.
Source: Rock Tech Lithium (https://rocktechlithium.com/en/rock-tech-lithium-strengthens-made-in-ontario-lithium-supply-chain-with-binding-spodumene-offtake-agreement-securing-up-to-us80-million-prepayment-facility-for-georgia-lake-project/)
