Mr Robert Friedland and Mr Jiang Zhaobai, Co-Chairmen of Clean TeQ Holdings (Clean TeQ or Company) (CLQ:ASX; CTEQF:OTCQX), today announced the signing of a binding offtake agreement with Beijing Easpring Material Technology Co (Easpring) for the supply of hydrated cobalt sulphate and nickel sulphate products from the Syerston Cobalt – Nickel – Scandium Project (Project) in central New South Wales.
Key terms of the offtake agreement include:
- A binding agreement for the purchase of annual tonnages representing approximately 20% of Syerston’s planned production of cobalt sulphate (CoSO4.7H2O) and nickel sulphate (NiSO4.6H2O).
- The agreement term is for an initial five-year period, commencing from the start of commercial production at Syerston.
- Pricing is linked directly to LME and LMB quoted metal pricing for nickel and cobalt respectively, with sulphate premia to be agreed quarterly based on the prevailing market pricing.
- The agreement will convert to a life-of-mine offtake in the event Easpring acquires a minimum 25% interest in the Project, on terms to be agreed.
- The parties will evaluate potential co-location of precursor and/or cathode manufacture as an integrated part of the development of Syerston.