The Kamativi Tailings Company (KTC) and Transamine Trading SA have agreed a $9.5 million finance and offtake facility for concentrate produced from the Kamativi tailings lithium project in Zimbabwe.
KTC is the Zimbabwean subsidiary of Canada-based strategic metals group, Chimata Gold Corporation.
The financing facility will see the company establish a dense medium separation plant.
KTC also added that it had secured off take agreements for the first 150 000 tonnes of lithium concentrate under the arrangement.
“During first quarter of 2019, local engineering firm, MEPP will complete all the aspects of the engineering DMS plant design criteria with MinMet, leading to the importation, erection and construction of the DMS plant during the second and third quarter,” said the company in its latest project update.
“The company will commence civil engineering requirements at the Kamativi site which will include but not limited to the refurbishment of existing buildings, preparation of the plant site and associated buildings, reconditioning of the electrical, water and sewerage infrastructure required to support Phase 1 of the project.”
According to KTC chairman John McTaggart the company “looks forward to developing a long-lasting and beneficial relationship with Transamine over the years to come”.
Chimata Gold Corp has a 60% equity stake in KTC, which is a joint venture with the remaining 40% of the equity being held by the Zimbabwe Mining Development Corporation.
Zimbabwe is set to become a Lithium hub for Southern Africa with the Zimbabwe Government providing support for lithium projects.