Western Australian battery metals developer Alliance Nickel Ltd (ASX: AXN) has entered into a game changing Binding Offtake Agreement and Share Subscription Agreement with multinational automotive manufacturing corporation Stellantis N.V.
The deals relate to future offtake from Alliance’s NiWest Nickel Cobalt Project in WA.
“The Binding Agreements with Stellantis, one of the world’s leading and most forward-thinking vehicle manufacturers, are transformative for the future of Alliance,” Alliance Managing Director and CEO, Paul Kopejtka said.
“It validates our development strategy for the NiWest Nickel-Cobalt Project and opens critical new funding options by securing a premier Tier 1 cornerstone customer and investor.
“We look forward to a long partnership with Stellantis as we continue to execute our strategy to become the next Australian supplier to the global markets of premium battery-grade nickel and cobalt sulphate. This is truly a ‘We Win Together’ outcome for both companies.”
Stellantis CEO, Carlos Tavares, said the commitments of Dare Forward 2030 and the company’s industry-leading decarbonization drive are built on the foundation of a guaranteed supply of key materials for our battery electric vehicles.
“The partnership with Alliance Nickel is an important element of our plan to provide clean, safe and affordable mobility for people throughout the world.”
The Binding Agreements solidify the partnership between Stellantis and Alliance, inaugurated in October 2022 with a non-binding memorandum of understanding for the supply of electric vehicle battery materials.
Since this time, Stellantis and Alliance have been working closely to finalize the Binding Agreements. This has included the completion of technical due diligence by Arethuse Geology, which involved a site visit and comprehensive review of all technical data relating to the proposed heap leach development at NiWest.
Binding Offtake Agreement
The Binding Offtake Agreement for battery grade materials is for the first five years of operations for the NiWest Project and Alliance will supply approximately 170,000t of nickel sulphate and 12,000t of cobalt sulphate in total over this initial five year period.
Conditions precedent include successful start-up of commercial production, product qualification and other clauses customary for an agreement of this nature. Pricing will be linked to index pricing on a take-or-pay basis.
Share Subscription Agreement
Stellantis will subscribe for A$15M in new equity in Alliance at a subscription price of A$0.18 per share.
The Placement is structured in two tranches. Issue of, and proceeds for, the first tranche of 70.6 million shares is set to be completed within the next five business days.
Funding from the Placement is to be applied towards the completion of the NiWest DFS and engineering design works.
For further information please visit: https://alliancenickel.au/
