COQUITLAM, BC, Aug. 11,
2022 /CNW/ -- Fuse Cobalt Inc. ("the
Company" or "Fuse") (TSXV: FUSE) (OTCQB: FUSEF) (FRA:43W3) is
pleased to announce that effective August 9,
2022 , the Company has signed a non-binding Memorandum of
Understanding ("MOU") regarding a Cobalt Raw Material Supply
Agreement with Electra Battery Materials Corporation
("Electra"). This agreement is focused primarily on Fuse's Teledyne
and Glencore Bucke Cobalt Exploration Projects located in
Cobalt, Ontario in close proximity
to Electra's cobalt sulfate refinery in Temiskaming Shores,
Ontario.
Mr. Robert Setter, Fuse CEO
comments, "This MOU is the first step towards a potential
Definitive Agreement to supply cobalt raw material for Electra's
nearby cobalt refinery and sets out the terms by which we will
exchange information with Electra to advance a potential
transaction to involving the supply of cobalt raw materials. The
end result of this collaboration will be the execution of a
Definitive Agreement to provide cobalt feed stock to the Electra
Cobalt Refinery which is roughly a stone's throw away from
our two cobalt exploration properties in Ontario."
Trent Mell, Electra's CEO stated,
"Having a domestic source of cobalt raw material produced ethically
and with low-carbon emissions will help us to better address the
demand for onshore EV battery materials. We look forward to working
with Fuse Cobalt as they advance development of their projects and
begin production."
The Transaction contemplates the supply of cobalt raw material
from either one or both of the Company's Glencore Bucke and
Teledyne mining projects located in northeastern Ontario, Canada. The transaction is expected
to provide a 'Made in North
America', low greenhouse gas emissions cobalt
sulfate solution, capable of supplying the continent's growing
lithium-ion battery supply capacity.
This MOU is anticipated to lay the framework for a future
Transaction contemplating the following elements:
- Electra commits to purchase up to 2 kpta (kilo tonnes) per
annum of cobalt contained in raw material from Fuse Cobalt's
'Glencore Bucke' and/or 'Teledyne' operations to Electra's Cobalt
Camp Refinery.
- Fuse Cobalt will use
commercially reasonable efforts to achieve commercial production on
or before January 1, 2028, which may
be extended by agreement of the parties for up to 12 months
following which Electra has a right to terminate the agreement and
Fuse Cobalt may elect to sell to other parties.
- The purchase price to be paid by Electra for cobalt in raw
material will be linked to Fastmarkets MB's standard-grade metal
price multiplied by a payable mechanism to be agreed prior to
completion of the Transaction.
- Electra and Fuse Cobalt agree to collaborate on ways to extract
copper by-product on a profit share basis.
The Transaction is subject to a Definitive Agreement which is in
turn subject to the following conditions:
- Fuse to develop a processing flowsheet designed to produce a
cobalt material which is suitable for further processing to battery
grade cobalt sulfate at Electra's refinery.
- Fuse to align with and abides by Electra's Supply Chain Policy,
Environmental Policy, Sustainability Policy, and Human Rights
Policy, as outlined in Appendix A of this MOU. Within 12 months of
first production, furthermore, Fuse Cobalt commits to starting the
process to become Responsible Minerals Initiative certified through
the Responsible Minerals Assurance Process.
- Fuse to successfully complete a bankable feasibility study of
either or both of the aforementioned primary cobalt projects.
About Fuse Cobalt Inc. https://fusecobalt.com/
Fuse Cobalt Inc. is a Canadian based exploration company that
trades under the symbol FUSE on the TSX Venture Exchange. The
Company's focus is on exploration for high value metals required
for the manufacturing of batteries.
Ontario Cobalt Properties:
Fuse owns a 100% interest its Glencore Bucke Property, situated
in Bucke Township, 6 km
east-northeast of Cobalt, Ontario,
subject to a back-in provision, production royalty and off-take
agreement. The Glencore Bucke Property consists of 16.2 hectares
and sits along the west boundary of Fuse's Teledyne Cobalt Project.
The Company also owns a 100% interest, subject to a royalty, in the
Teledyne Project located near Cobalt,
Ontario. The Teledyne Property adjoins the south and west
boundaries of claims that hosted the Agnico Mine.
On Behalf of the Board of Directors
"Robert Setter"
Robert Setter, President &
CEO
Phone : (236) 521-0207
Email: info@fusecobalt.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward-looking statements which include, but are not limited to,
comments that involve future events and conditions, which are
subject to various risks and uncertainties. Except for statements
of historical facts, comments that address resource potential,
upcoming work programs, geological interpretations, receipt and
security of mineral property titles, availability of funds, and
others are forward-looking. Forward-looking statements are not
guarantees of future performance and actual results may vary
materially from those statements. General business
conditions are factors that could cause actual results.
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SOURCE Fuse Cobalt Inc.
