London trader Stratton to sell First Cobalt's refinery output in 5-yr deal

Electra Battery Materials

28/03/2021 15:21

TORONTO, March 28 (Reuters) - London-based metals trader
Stratton Metal Resources Ltd will sell cobalt sulphate produced
by First Cobalt Corp's  FCC.V  Canadian refinery under a
five-year deal, a source with direct knowledge of the
arrangement said on Sunday. 
    Contract terms including price and quantity were not
immediately known. 
    Under the deal First Cobalt will have the option to sell up
to 100% of its annual cobalt sulfate to Stratton once its
refinery in Ontario province is in production, the source said. 
    Stratton did not immediately respond to an email seeking
comment. First Cobalt declined to comment. 
    Demand for cobalt, a key ingredient for the rechargeable
lithium-ion batteries used to power electric vehicles, is
expected to surge as governments and consumers clamp down on
fossil fuels such as diesel and gasoline to cut greenhouse gas
emissions. 
    The contract provides flexibility for First Cobalt to enter
offtake agreements with automakers and their suppliers, reducing
amounts available to Stratton, the source said.
    First Cobalt in January said it would buy cobalt hydroxide
from Glencore's  GLEN.L  Kamoto Copper Company operation in
Democratic Republic of the Congo for five years starting in
2022.  urn:newsml:reuters.com:*:nL1N2JM2B2
    The Canadian company last week said it would repay a loan to
Glencore by issuing stock equivalent to 4.8% of the outstanding
shares.  urn:newsml:reuters.com:*:nL4N2LO2PO
    Construction at the C$77 million plant, about 600 kilometers
(373 miles) from the U.S. border, is slated to start in mid-2021
with production commencing in October 2022. 
    Production will be 5,000 tonnes of refined cobalt sulphate
annually.


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
First Cobalt signs supply deal with Glencore, eyes China Moly
contract     urn:newsml:reuters.com:*:nL1N2JM2B2
Canada's First Cobalt to issue shares to Glencore to repay $5.5
mln debt     urn:newsml:reuters.com:*:nL4N2LO2PO
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Jeff Lewis; Editing by Lisa Shumaker)
 ((Jeff.Lewis@thomsonreuters.com; +1 647 200 7236))