The Core Lithium Ltd (ASX: CXO) share price is having a strong start to the day.
In morning trade, the lithium miner's shares are up almost 5% to 43 cents.
Why is the Core Lithium share price charging higher?
Investors have been buying the company's shares today after it released an announcement relating to its 100%-owned Finniss Lithium Operation in the Northern Territory.
According to the release, the inaugural lithium product delivery from Core's long-term offtake agreements has been successfully trucked to Darwin Port.
A 10,000t parcel of spodumene concentrate is now ready for shipping to foundation customer Ganfeng Lithium.
Management advised that the product presented well and is within contract specifications. This follows the two concentrate shipments made in April and July under separate agreements with Sichuan Yahua.
Another positive announcement today is that Core Lithium has successfully completed negotiations for the sale of an initial parcel of fines from its Finniss operations.
Over 13,000t of the 15,000t parcel, with a grade averaging 1.2% Li2O, has also been trucked to Darwin Port awaiting export in early September. The balance of the fines shipment is expected to be transported to the port within the next few days.
Management believes that the successful sale of fines, which are generated during the crushing and processing of ore through the Dense Media Separation Plant, has established a viable commercial outlet for this material as it continues with its recovery optimisation initiatives.
'A significant milestone'
Core Lithium's CEO, Gareth Manderson, believes this is another milestone moment for the company. He said:
Delivering concentrate into long-term offtake agreements is a significant milestone for Core as we ramp up to commercial operations at the Finniss Lithium Operation. The product presents well, with moisture and grade within contractual specifications.
It is also very pleasing to see the first fines cargo delivered to the Darwin Port ready for shipment into an additional agreement to a valued customer. The sale of lithium fines was identified as an immediate commercial option to address lower recoveries being experienced during ramp-up.
Delivering first concentrate into long-term offtake agreements, and the sale of first fines are both significant milestones, and I commend the Core team for the work they have done to safely produce and deliver these products.
