Chilean Cobalt, a critical minerals exploration and development company focused on the La Cobaltera project in Chile, has signed a letter of intent with commodities trader Glencore for a 5-year cobalt and copper offtake agreement.
Chilean Cobalt will supply 100% of its production volumes to Glencore, the sale price will be based on an agreed upon pricing formula linked to future prevailing market prices. The majority of raw materials will be shipped into the United States and/or US Free Trade Agreement countries.
According to the company, the agreement is in line with its strategy to establish an Americas-centric cobalt supply chain to secure future project financing.
In addition, Glencore is expected to provide strategic support for the La Cobaltera Phase 1 advancement as well as collaborate on greenfield solutions for domestic US processing and refining into battery materials and metal products.
La Cobaltera project located in Chile’s historic San Juan cobalt district, comprises 2,635 hectares of 100% owned and unencumbered mining property. According to the company, it is a historic mining district with numerous past-producing mines and excellent infrastructure and accessibility.
The project includes cobalt-copper oxide and sulphide resources with evidence of gold at depth across several known exploration and development targets district-wide.
Theodor Lisovoy, Editor in Chief, Rough&Polished
