Alliance Nickel Limited (ASX: AXN) has signed a non-binding term sheet with Samsung SDI Co., Ltd. for the future offtake of battery grade nickel and cobalt sulphate products from the NiWest Nickel-Cobalt Project, Western Australia.
The term sheet outlines the general terms pursuant to which Samsung SDI will, subject to final negotiations of the definitive terms and conditions and satisfaction of customary conditions, enter into a binding offtake agreement for an initial period of six years. The start of commercial delivery will be subject to agreed conditions.
“We are delighted to introduce Samsung SDI as a new potential long term strategic partner in the NiWest Project, particularly given the current challenging market conditions facing the critical minerals sector.” Said managing director, and CEO, Mr. Paul Kopejtka. “The term sheet is further validation of the credentials of the NiWest Project, its strategic significance to Tier-one automakers and battery manufacturers and the importance of the supply of specialty materials that comply with the US Inflation Reduction Act.”
In addition, Samsung SDI and Alliance will discuss a potential acquisition by Samsung SDI of an equity interest in a project company to be formed by Alliance that will hold the NiWest Project. This approach is consistent with Alliance’s commercial strategy of aligning offtake agreements and project funding.
NiWest is an advanced nickel-cobalt development project located approximately 55km east of Leonora in the northeastern Goldfields region of Western Australia. The proposed location of the processing facility for NiWest is within approximately 30km of Glencore’s Murrin Murrin operation, the largest nickel-cobalt operation in Australia.
To find out more, please visit www.alliancenickel.au
To read more articles like this, please visit www.theassay.com/news