Chilean Cobalt announces LOI for offtake, strategic partnership with Glencore

Chilean Cobalt entered into a non-binding Letter of Intent with Glencore AG regarding an offtake agreement and strategic partnership for its La Cobaltera project in northern Chile. This offtake agreement for cobalt and copper intermediate products pursuant to which C3 is expected to supply Glencore with 100% of the Company’s production of cobalt and copper for an initial period of five years. The sales price will be based on an agreed upon pricing formula linked to future prevailing market prices. C3 and Glencore anticipate that the majority or full spectrum of copper and cobalt intermediate product stream will be shipped into the United States and/or US Free Trade Agreement countries. This is in-line with C3’s ongoing discussions with certain 3rd parties regarding the Company’s strategy to establish an Americas-centric cobalt supply chain and works to satisfy C3’s own conditions precedent regarding the Company’s potential strategic project financing. In addition, Glencore is expected to provide strategic support for the advancement of C3’s La Cobaltera Phase 1 cobalt-copper project and collaboration on greenfield solutions for domestic US processing and refining into battery materials and/or metal products. Through this Offtake Agreement, C3 is expected to be able to leverage Glencore’s own capabilities and global network as one of the world’s leading industrial producers and marketers of cobalt with extraction and processing in the Democratic Republic of the Congo, Australia, Canada, and Norway – and with a growing cobalt recycling presence in the US. This Offtake Agreement will be subject to conditions precedent and contain standard termination rights, which are typical for an agreement and project of this nature. C3 and Glencore will also include agreed Responsible Sourcing and Sustainability provisions.