Corcel PLC Signed MOU for Nickel Offtake (8495X)
January 10 2022 - 2:00AM
UK Regulatory
TIDMCRCL
RNS Number : 8495X
Corcel PLC
10 January 2022
Corcel PLC
("Corcel" or the "Company" or "CRCL")
MOU for Nickel Offtake Signed with Shandong New Powder COSMO
AM&T
10 January 2022
Corcel, the natural resource exploration and development company
with interests in battery metals and flexible energy generation and
storage, announces that it has entered into a non-binding
Memorandum of Understanding ("MOU") with Shandong New Powder COSMO
AM&T ("NPC") for the supply of nickel from the Company's
Mambare and WoWo gap nickel projects, where the Company owns a 41%
and 100% interest respectively.
Highlights:
o NPC is seeking to purchase up to 0.5Mt per annum of nickel DSO
("Direct Shipping Ore") products
o CRCL and NPC agree to negotiate in good faith to enter into a
binding nickel DSO offtake agreement for production from the
Mambare and Wo Wo Gap projects
o NPC is a joint venture between Sentient Global Resources
Funds, Dougide Group and the Korean COSMO AM&T Co. Ltd, and
focusing on producing lithium battery cathode materials
o NPC owns and operates a 5,000tpa cathode plant in China with
plans to expand to 20,000tpa in 2022
Agreement Details
Under the terms of the MOU, NPC is seeking to purchase up to
0.5Mt per annum of nickel DSO products from the Mambare and WoWo
Gap projects.
As part of the MOU, NPC and CRCL have agreed to negotiate in
good faith to enter into a binding offtake agreement for the
purchase of nickel by NPC. The initial term of the offtake
agreement will be for 3 to 5 years. Pricing of the products will be
linked to the underlying commodity prices on the London Metals
Exchange, or some other mutually agreeable index, with
consideration given to purity and specification.
NPC and CRCL will also work together to establish product
specifications to be used in the offtake agreement that are
acceptable to NPC and can be produced by the Company's nickel
projects. This may constitute additional development of existing
feasibility studies as well as technical analysis. NPC and CRCL
also agree to work together to identify and secure the funding
required to move the Mambare and Wo Wo Gap projects to
production.
The term of the MOU is for 12 months, unless extended by mutual
consent.
About Shandong New Powder COSMO AM&T
Shandong New Powder COSMO AM&T (NPC) is a JV built by
Sentient Global Resources Funds, Shandong Doguide Group and the
Korean COSMO AM&T Co., Ltd.
Sentient Global Resources Funds is a private equity group with
$2.7bn under management with assets in the metals, minerals, and
energy space. Doguide Group is the 3(rd) largest titanium pigment
producer in China with 200ktpa and $300m of annual revenues. COSMO
AM&T is a publicly listed Korean company with a US $1.3bn
market capitalisation and is the number 4 lithium battery cathode
producer in Korea with a capacity of 12,000tpa, serving customers
such as Samsung, LG, Sony and Umicore.
The Chinese based NPC JV has introduced advanced cathode
technology and equipment from Korea and Japan to China, and focuses
on the R&D and production of LCO, NCM523, NCM622, NCM811, and
NCA li-ion battery ternary cathode materials, which are used in
electronics, electric vehicles and energy storage applications.
For further information, please contact:
Scott Kaintz 020 7747 9960 Corcel Plc CEO
James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd NOMAD & Broker
Simon Woods 0207 3900 230 Vigo Communications IR
This announcement contains inside information under Article 7 of
Regulation (EU) 596/2014.
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END
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