Kuniko (ASX: KNI) has entered into a strategic partnership with Stellantis, a world leading automaker and provider of mobility solutions, with a significant upstream investment, fostering innovation and growth in the European battery metals sector.
Antony Beckmand, CEO, commented: “We are pleased to announce this major equity investment and strategic partnership between Stellantis and Kuniko, driven by a shared vision to secure sustainable European battery value chain solutions. This collaboration represents a significant milestone for us, as it signifies not only a substantial financial backing but also a resounding validation of the immense potential of our battery metals project portfolio in Norway.”
Stellantis will make a €5,000,000 investment, equivalent to approximately A$7,843,137, acquiring a 19.99% shareholding in Kuniko at an issue price of A$0.467 per share (being the 30-day VWAP for shares up to 31 May 2023).
Kuniko and Stellantis have agreed on an offtake term sheet, securing a 35% future production offtake of nickel sulphate and cobalt sulphate from Kuniko’s Norwegian exploration projects for a term of nine years, with a formal offtake agreement to be entered into by 31 December 2027 conditional on certain project development milestones being achieved.
The proceeds from the equity investment will be utilized to advance Kuniko’s brownfield and greenfield battery metals exploration projects in Norway, complimenting Kuniko’s further growth opportunities in other tier one jurisdictions.
“The investment and term sheet for future offtake are a testament to Stellantis’ confidence in our ability to deliver sustainable and ethical sources of critical battery metals that will drive the future of electromobility in harmony with EU regulations. Together with Stellantis, we eagerly anticipate working hand in hand to achieve exploration success, move towards production, and make meaningful contributions to the growth and advancement of the European battery industry.” Added Antony.
To find out more, please visit www.kuniko.eu
