REG - Corcel PLC - Signed MOU for Nickel Offtake

CorcelAnnouncement

10/01/2022 07:05

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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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