TORONTO, March 29, 2021 /CNW/ - First Cobalt Corp.
(TSXV: FCC) (OTCQX: FTSSF) (the "Company") today announced that it
signed a flexible, long-term, offtake agreement with Stratton Metal
Resources Limited ("Stratton Metals") for the sale of future cobalt
sulfate production from the First Cobalt Refinery located in
Ontario, Canada.
Highlights
- First Cobalt will have the option to sell up to 100% of its
annual cobalt sulfate production to Stratton Metals once its
refinery is in production. Quantities will be determined by First
Cobalt in advance of each calendar year and are subject to a
minimum annual quantity
- Provides flexibility for First Cobalt to enter into offtake
contracts with OEMs and their suppliers, reducing amounts made
available to Stratton Metals
- Contract term of five years matches the term of First Cobalt's
feed supply agreements and anticipated term of its credit
facility
- Sale price will be based on prevailing market price at the time
of shipment
This announcement is consistent with the Company's strategy of
bringing battery grade cobalt to the North American EV market. The
ability to elect the annual quantity sold to Stratton Metals will
provide the Company with time and flexibility to advance offtake
and battery recycling discussions with potential OEM partners.
"Stratton Metals are among the most knowledgeable cobalt
traders in the world, with a network of relationships in every
major market", said Trent Mell,
President and Chief Executive Officer. "This sales arrangement is a
key milestone for the Company as firming up commercial arrangements
supports the financing process for the refinery expansion. Refinery
commissioning remains on schedule for October 2022. We look forward to working with
Stratton to supply the world's
most sustainable cobalt to the electric vehicle market."
The five-year offtake contract matches the expected term of a
project debt facility currently being negotiated as well as
long-term arrangements for refinery feedstock. In January 2021, First Cobalt concluded five-year
cobalt hydroxide feed purchase arrangements with Glencore AG and
IXM SA. The offtake arrangement with Stratton represents a long-term partnership
arrangement that will assist First Cobalt as it enters the cobalt
sulfate market and qualifies its product with various cathode and
battery cell manufacturers. Stratton Metals will be paid a fee
relating to the cobalt sulfate sales made under this agreement.
First Cobalt intends to market a premium brand of cobalt that is
ethically sourced and has one of the lowest (and potentially the
lowest) greenhouse gas emissions in the industry. First Cobalt will
continue to partner with leaders in the cobalt industry to produce
a premium, sustainable source of cobalt for the rapidly growing EV
market.
Refinery Overview
The First Cobalt Refinery is a hydrometallurgical cobalt
refinery located north of Toronto,
in the community of Temiskaming Shores. The facility operated from
1996 to 2015, producing cobalt, nickel, and silver. The Company is
expanding the facility and modifying the flow sheet to refine third
party cobalt hydroxide intermediate product into a high purity,
battery grade cobalt sulfate suitable for lithium-ion batteries.
Today, approximately 80% of cobalt sulfate is made in China and there is no production in
North America. In December 2020, the Government of Canada and the Government of Ontario announced a joint $10 million investment in the First Cobalt
Refinery to help accelerate commissioning and expansion.
About Stratton Metals
Stratton Metal Resources Limited is a London-based metals trader that specializes in
offtake and marketing of base metals on a world-wide basis, with a
particular focus on nickel and cobalt. Their team of professionals
brings together a wide range of experience in commodity trading,
trade finance, marketing and logistics. Stratton Metals is
committed to acting ethically and with integrity in its dealings
and relationships with suppliers and customers throughout the
world. For more information on Stratton Metals contact Tony Southgate at +44.7395.790.311.
About First Cobalt
First Cobalt's mission is to be the most sustainable producer of
battery materials. The Company owns North
America's only permitted cobalt refinery, a critical asset
in the development and manufacturing of batteries for electric
vehicles. First Cobalt owns the Iron Creek cobalt-copper project in
Idaho, USA as well as several
significant cobalt and silver properties in the Canadian Cobalt
Camp.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt believes that the information
and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, First Cobalt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE First Cobalt Corp.