Today, Global Cobalt announced that it has entered a preliminary offtake agreement with top battery materials supplier Beijing Easpring Materials Technology.
This past week, Globalt Cobalt (TSXV:GCO) released a slew of news regarding its flagship Karakul cobalt deposit, located in Russia’s Altai Republic, but so far today’s has been the most exciting. The company revealed this morning that it has entered a preliminary offtake agreement with top battery materials supplier Beijing Easpring Material Technology.
Under the agreement, Easpring has the right to sell 100 percent of the crude cobalt hydroxide, cobalt concentrate or cobalt carbonate produced at Karakul for 10 years following the start of commercial production at market-competitive prices. The material must meet Easpring’s technical requirements.
The agreement also gives Easpring the opportunity to participate in future mine project financing.
Erin Chutter, president and CEO of Global Cobalt, commented positively on the news, noting in the company’s press release, “[w]e are very pleased to be executing our first offtake agreement with a company of Easpring’s stature, experience and strong ties to end-users in the cobalt market and rechargeable battery sector while retaining the option to develop other customers.” She also said that the agreement “reflects a robust, long-term demand outlook for cobalt and will play an important role in securing future project financing to develop Karakul.”
For Beijing-based Easpring, the agreement represents an opportunity to get more deeply involved with Karakul — just yesterday, the Beijing General Research Institute of Mining & Metallurgy (BGRIMM), one of its shareholders, was awarded the feasibility study contract to advance Karakul.
At the moment, site preparation is underway at Karakul, and Global Cobalt expects that two drill rigs, deployed to the site last week, will be operating by the third week of October.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Global Cobalt is a client of the Investing News Network. This article is not paid-for content.