Automaker Stellantis signs battery metals offtake deal with Australia's Kuniko (updated)
03/07/2023 03:52
(Adds more details on the deal throughout, updates shares)
July 3 (Reuters) - Australia's Kuniko KNI.AX said on
Monday it had signed an offtake and equity investment agreement
with automaker Stellantis STLAM.MI to support the development
of its Norwegian battery metals projects.
Stellantis would invest 5 million euros ($5.45 million) at
an issue price of A$0.467 per share in the battery metals miner
in return for a near 20% stake, Kuniko said.
Kuniko shares rose as much as 58.1% to A$0.680, their
highest level since Oct. 31.
Under the deal, announced by Stellantis on Friday, the
carmaker will also get 35% of the nickel sulphate and cobalt
sulphate produced from Kuniko's Norway exploration projects for
nine years.
The funds from the Stellantis' equity investment will be
used to advance Kuniko's brownfield and greenfield battery
metals exploration projects in Norway, the company said.
($1 = 0.9168 euros)
(Reporting by Himanshi Akhand and Rishav Chatterjee in
Bengaluru; Editing by Rashmi Aich and Krishna Chandra Eluri)
((Rishav.Chatterjee@thomsonreuters.com;))