Puget Ventures Inc. (TSXV:PVS) announced a strategic partnership with Beijing AXHA Investment Co., whose parent company is CITIC Anhua Group. Anhua will arrange for an off-take agreement for the products of the Karakul Project with a major Chinese processor, subject to the approval of Puget Ventures, and arrange for the full financing for the EPC contract for the Karakul Project.
As quoted in the press release:
Highlights of this strategic partnership under the terms of the MOU, which is subject to, amongst other things, Puget’s completion of the Pafra Transaction and the parties entering into a definitive agreement, include:
• Anhua to nominate EPC contractor for the Karakul project with agreement of Puget Ventures.
• Anhua and the EPC contractor to work with a technical and business team from Puget Ventures to develop a Bankable Feasibility Study, subject to a completed scoping level study prepared at the cost of the EPC contractor.
• Anhua to arrange for an off-take agreement for the products of the Karakul Project with a major Chinese processor, subject to the approval of Puget Ventures.
• Anhua to arrange for the full financing for the EPC contract for the Karakul Project.
• Puget Ventures to agree to pledge the mining rights of the Karakul mine or the shares of the company that is holding the mining rights of the Karakul mine against the debt instrument.
• Puget Ventures to issue common share purchase warrants to Anhua based on outcomes of scoping study proposal.
Puget Ventures CEO Erin Chutter said:
“In developing this tactical union with CITIC Anhua, the Company is laying the foundations for a team best suited to advance the world-class Karakul cobalt assets. This is a significant step forward for Puget Ventures expansion into becoming a leader in the strategic metals sector.”