China's Suzhou TA&A Ultra Clean Technology, which is Global's largest single shareholder holding 9.4% via its 75% interest in lithium hydroxide producer Yibin Tianyi, has signed a deal to take spodumene concentrate over a decade from the company's Western Australian lithium portfolio, equalling at least 30% of production.

 

The terms allow for increases of up to 15% in each contract year.

 

Global's projects comprise the undeveloped 100%-owned Marble Bar and 80%-owned Manna projects in the Pilbara and Eastern Goldfields regions, respectively, that host 18.4 million tonnes at 1.06% lithium, and have plenty of upside.

 

An updated resource is planned for later this month.

 

Pricing will be based on a US dollar market price for spodumene concentrate, determined by internationally recognised price reporting agencies.

 

Suzhou has also expressed an intention to provide ongoing financial support and construction aid, as Global seeks to move its resources to reserves, and then development within two years.

 

Non-executive chair Warrick Hazeldine described the backing as "an exceptional vote of confidence".

 

The agreement is conditional on board approvals within 60 days, and can be terminated if Global hasn't commissioned a concentrate plant and delivered at-spec product by the end of 2024.

 

Yibin Tianyi's other 25% shareholder is the world's largest EV battery producer, Contemporary Amperex Technology (CATL).

 

Global aims to complete at least 80,000m of drilling this year to expand its resources.

 

Global is cashed up, having completed a A$13.6 million placement at 37c last year to accelerate its growth plans, with Yibin Tianyi putting in half for a 9.9% cornerstone stake.

 

The stock was up 12% this morning to $1.66, valuing it at $267 million.

 

Global has traded between 24c and $1.84 per share since listing at 20c per share last May.