BERWYN, PA / ACCESSWIRE / July 8, 2024 / Chilean Cobalt Corp. (OTCQB:COBA) ("C3" or the "Company") is pleased to announce it has entered into a non-binding Letter of Intent ("LOI") with Glencore AG, a wholly-owned subsidiary of Glencore plc (LSE: GLEN) (together, with its subsidiaries, "Glencore") regarding an offtake agreement and strategic partnership for its La Cobaltera project in northern Chile.
This offtake agreement for cobalt and copper intermediate products (the "Offtake Agreement") pursuant to which C3 is expected to supply Glencore with 100% of the Company's production of cobalt and copper for an initial period of five years. The sales price will be based on an agreed upon pricing formula linked to future prevailing market prices.
C3 and Glencore anticipate that the majority or full spectrum of copper and cobalt intermediate product stream will be shipped into the United States ("US") and/or US Free Trade Agreement ("FTA") countries. This is in-line with C3's ongoing discussions with certain 3rd parties regarding the Company's strategy to establish an Americas-centric cobalt supply chain and works to satisfy C3's own conditions precedent regarding the Company's potential strategic project financing. In addition, Glencore is expected to provide strategic support for the advancement of C3's La Cobaltera Phase 1 cobalt-copper project and collaboration on greenfield solutions for domestic US processing and refining into battery materials and/or metal products.
Through this Offtake Agreement, C3 is expected to be able to leverage Glencore's own capabilities and global network as one of the world's leading industrial producers and marketers of cobalt with extraction and processing in the Democratic Republic of the Congo, Australia, Canada, and Norway - and with a growing cobalt recycling presence in the US.
This Offtake Agreement will be subject to conditions precedent and contain standard termination rights, which are typical for an agreement and project of this nature. C3 and Glencore will also include agreed Responsible Sourcing and Sustainability provisions.
This press release does not constitute an offer or sale of, or the solicitation of an offer to buy, securities of the Company nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Chilean Cobalt Corp.
Chilean Cobalt Corp. ("C3") is a US-based and US-listed critical minerals exploration and development company focused on the La Cobaltera cobalt-copper project, located in the past-producing San Juan District in northern Chile, one of the world's few primary cobalt districts known globally. C3 has a deliberate focus on building a dynamic and sustainable business with an emphasis on applying leading environmental stewardship, social engagement, and corporate governance practices to its strategy.
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan", and other similar expressions. Examples of forward-looking statements include, among other, statements the Company makes regarding its ability to enter into a definitive agreement with Glencore for offtake and strategic partnership as provided for in the LOI, ability to establish "Proven" or "Probable" Reserves, as defined by the SEC under Industry Guide 7, through the completion of a Definitive Feasibility Study for the minerals that the Company seeks to produce and the inherent risks of mining exploration, development, and processing operations that may negatively impact the business. Consequently, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the Company. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
CONTACTS:
Chilean Cobalt Corp.
Duncan T. Blount
Chairman & CEO
Duncan.Blount@chileancobaltcorp.com
SOURCE: Chilean Cobalt Corp.
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