Signs Up For Sale Of 100% Of Ontario Production
First Cobalt Corp.(TSXV: FCC) has signed a flexible, long-term, offtake agreement with Stratton Metal Resources Limited for the sale of future cobalt sulphate production from the First Cobalt Refinery located in Ontario, Canada.
First Cobalt will have the option to sell up to 100% of its annual cobalt sulphate production to Stratton Metals once its refinery is in production. Quantities will be determined by First Cobalt in advance of each calendar year and are subject to a minimum annual quantity
President and CEO, Trent Mell, said the contract term of five years matches the term of First Cobalt’s feed supply agreements and anticipated term of its credit facility.
Mr Mell said this announcement is consistent with the company’s strategy of bringing battery grade cobalt to the North American EV market. He added that the ability to elect the annual quantity sold to Stratton Metals will provide the company with time and flexibility to advance offtake and battery recycling discussions with potential OEM partners.
“Stratton Metals are among the most knowledgeable cobalt traders in the world, with a network of relationships in every major market,” Mr Mell said.
“This sales arrangement is a key milestone for the company as firming up commercial arrangements supports the financing process for the refinery expansion. Refinery commissioning remains on schedule for October 2022. We look forward to working with Stratton to supply the world’s most sustainable cobalt to the electric vehicle market.”
The First Cobalt Refinery is a hydrometallurgical cobalt refinery located north of Toronto, in the community of Temiskaming Shores. The facility operated from 1996 to 2015, producing cobalt, nickel, and silver. The company is expanding the facility and modifying the flow sheet to refine third party cobalt hydroxide intermediate product into a high purity, battery grade cobalt sulphate suitable for lithium-ion batteries.
Today, approximately 80% of cobalt sulphate is made in China and there is no production in North America.
In December 2020, the Government of Canada and the Government of Ontario announced a joint C$10 million investment in the First Cobalt Refinery to help accelerate commissioning and expansion.
Stratton Metal Resources Limited is a London-based metals trader that specialises in offtake and marketing of base metals on a world-wide basis, with a particular focus on nickel and cobalt.
