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Sep 08, 2023

Fuse Cobalt signs supply MOU with Electra Battery Materials

Save to read list Published by Will Owen, Editor Global Mining Review, Tuesday, 16 August 2022 13:00

Fuse Cobalt Inc. has signed a non-binding memorandum of understanding (MOU) regarding a cobalt raw material supply agreement with Electra Battery Materials Corp.

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.

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:

The transaction is subject to a definitive agreement which is in turn subject to the following conditions:

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, comments:

"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."

Read the article online at: https://www.globalminingreview.com/mining/16082022/fuse-cobalt-signs-supply-mou-with-electra-battery-materials/

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Canadian mining news Cobalt news North American mining news