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High-Tech Metals Limited (ASX: HTM) (High-Tech, HTM or the Company) is pleased to announce it has entered into an agreement to acquire the Norpax Deposit (Norpax) and acquired an option to purchase the Reynar Lake Project (Reynar Lake) (Together, the Projects) which are both located in Ontario, Canada. The Projects are directly west and adjoin the Company’s existing project, Werner Lake Project (Werner Lake, or the Project), located in northwestern Ontario.
HIGHLIGHTS
The Company has significantly increased its exposure to nickel sulphides and copper through the following acquisition and option agreement:
Norpax Nickel Sulphide Deposit:
- A historical non-JORC compliant resource of 1,010,000 tonnes 1.2% Ni and 0.5% Cu1.*
*The historical estimates are not reported in accordance with the JORC codes. A competent person has not done sufficient work to classify the historical estimates as a mineral resource in accordance with JORC Code. It is uncertain that following further exploration work that the historical estimates will be able to be reported as mineral resources within the JORC Code. - The deposit lies ~1 km west of HTM’s existing project, Werner Lake, and along the Werner Lake Belt.
- The Norpax nickel mineralisation sits on a known mineralised fault zone, the regional scale Werner-Gordon-Rex lake fault which extends from Rayner Lake in the west, passing under Almo Lake, east through the Werner Lake Co and Gordon Lake Cu-Ni deposits to Rex Lake.
- Mineralised peridotite is known to host many significant nickel deposits such as companies Mincor Resources Ltd in Kambalda and also Azure Minerals Ltd (ASX:AZS) Andover project’s ultramafic zone, which is in part peridotite.**
- The area has a rich history in nickel sulphide mines with the old Gordon Lake Mine located 3.5 km to the East of Werner Lake, which produced 1,370,285 tons averaging 0.92% Ni and 0.47% Cu and has existing reserves of 170,420 tonnes averaging 0.85% Ni and 0.35% Cu2.
Reynar Lake Ni-Cu-Co Project:
- Reynar Lake project immediately adjoins HTM’s Werner Lake Project.
- The ground is highly prospective for Ni, Cu and Co and should the option be exercised, it will provide HTM with additional landholding to potentially increase its cobalt resource and explore for additional nickel sulphide mineralisation.
The Company plans to build on the recent exploration success at Werner Lake by immediately begin planning exploration on the newly acquired Projects.
The acquisition of the Projects increases HTM’s landholding in the Werner Lake Area and the Company’s exposure to battery metals such as copper, cobalt, and nickel.
Figure 1 – Location of Mineral Deposits in the Werner Lake Belt.
Sonu Cheema, Executive Director commented:
"We are excited by the acquisition of Norpax and the option over Reynar Lake with the potential for a nickel discovery in a historic nickel producing province of Canada. Not only do the acquisitions increase our exposure to nickel, but it also increases the Company’s land holding substantially making High-Tech one of the largest land holders in the area.
“As the Projects lay in the area of Werner Lake, the Company’s geological team are familiar with the geological setting. This has been recently proven by the Company’s discovery of high-grade samples of nickel sulphide (that exceeded assay detection limits) in the Werner Lake Project.
“The Company plans to utilise its expertise in the area by undertaking a review of all available geological data, performing a systematic geochemical sampling program of known mineral occurrences on the projects in conjunction with reconnaissance geological mapping and relog and assay all known and available core.”
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HTM:AU
Cobalt Market Update: Q2 2025 in Review
Prices for cobalt sulfate jumped even more steeply, climbing 74 percent month-over-month.
“If the DRC government wanted to flex its muscles and show miners and refiners who really controlled global cobalt reserves, it would appear they’ve succeeded for now,” wrote Fastmarkets’ Rob Searle in an April market update.
“Standard grade cobalt metal prices soared to highs not seen since November 2023 in the space of two weeks,” he added.
While prices initially stabilized in mid-April on renewed optimism from China, where futures markets rallied, sentiment remained fragile heading into May. With the DRC ban still in place and little progress reported in negotiations, cobalt prices held steady between US$15 and US$16 per pound.
According to Fastmarkets, import data from China showed a surge in cobalt hydroxide deliveries in March and April, though volumes were expected to taper off through the summer.
“For now, the cobalt market appears to have stabilized, with prices high enough to encourage sellers to offer material out. Refiners in China appear to have ample stocks of feed to continue to supply contract volumes,” Searle noted in a May overview.
He continued: “This month, we expect to see a reduction in import volumes of cobalt hydroxide into China. This is expected to tighten refinery feed out to August, should the export ban end towards the later stages of June, as initially planned.”
DRC extends export controls
After plunging to a nine year low in late January and then rebounding to multi-year highs by the end of Q1, cobalt prices began to ease in early June as supply uncertainty weighed on the market.
Despite the ongoing export ban in the DRC, trade data from China showed a significant influx of cobalt in April.
Imports of cobalt metal rose 60 percent month-on-month, driven largely by Indonesian supply, while exports surged 202 percent year-over-year.
"We are still seeing cobalt units arriving in China — or at least we were in May, which is the last month for which trade data were available,” said Olivier Masson, principal analyst at Fastmarkets, during a June presentation at the Lithium Supply and Battery Raw Materials conference.
According to Masson, China imported 75,000 metric tons of cobalt from the DRC in the first five months of 2025, along with another 22,000 metric tons in mixed hydroxide precipitate (MHP).
Of that MHP, 17,000 metric tons came from Indonesia. A region that is becoming increasingly important to the cobalt sector, especially as the DRC extended its export controls into September.
Although Indonesia is projected to increase its output, “the supply of cobalt from Indonesia is not going to be large enough to offset the loss of supply from the DRC,” said Masson.
Supply expected to slow in H2
Cobalt supply has surged over the past five years, with global mine production more than doubling from 140,000 metric tons in 2020 to 290,000 metric tons in 2024.
This rapid growth has far outpaced demand from the electric vehicle (EV) sector and other end users, resulting in a significant oversupply.
However, with the DRC -which accounts for roughly 70 percent of global cobalt production- extending its export limitations into the second half of the year mined supply is expected to register more muted gains in 2025.
“We expect mine supply growth to slow this year,” said Masson. “Prices are at multi-year lows, and yet, despite that, we still saw relatively strong growth numbers from major producers in the country.”
With exports stalled, inventories are building up in the DRC , a dynamic that may force operational adjustments.
“We might see miners who principally produce copper — and get cobalt as a by-product — start mining lower-grade cobalt ores in order to manage the inventories that are piling up,” Masson explained.
He added that cobalt sulfate demand slowed in 2024 due to a weaker-than-expected EV market in the West.
In response, Chinese refiners pivoted to producing cobalt metal instead, a shift that has significantly impacted global trade dynamics.
“Just like they did for nickel, Chinese refiners switched to cobalt metal production,” Masson said. “As a result, we’ve seen cobalt metal exports out of China jump by over 230 percent from January to May.”
Masson went on to explain: “This level of export growth is likely unsustainable. There’s limited feedstock coming from the DRC due to the export ban, and that will inevitably constrain Chinese production going forward.”
Strategically diversifying supply
As the global market looks ahead, geopolitical dynamics are taking on greater significance.
The US, which is seeking to secure non-Chinese sources of critical minerals, is actively engaged in negotiations with the DRC. At the same time, it’s backing infrastructure development, including support for the Lobito Corridor , a rail and port route that would allow DRC-sourced cobalt to be exported via the west coast of Africa, bypassing China entirely.
“Currently, about 83 percent of the DRC’s cobalt exports go to China,” Masson said. “But both the DRC and the US are motivated to diversify those flows.”
However, the US still lacks sufficient domestic PCAM capacity, a key step in the battery supply chain, which could limit its ability to process cobalt independently in the short term.
Looking at market dynamics more broadly, Masson said Fastmarkets expects cobalt supply to remain “adequate” in the near term. But with inventories outside the DRC being steadily drawn down, tighter conditions could emerge later this year.
“By August or September, we could start to see the market tightening,” he said. “Our price forecast before the export ban was extended … but now, there’s potential for prices to remain elevated longer than previously expected.”
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
