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Toronto-based Electra Battery Materials, formerly First Cobalt, has signed a deal with Kuya Silver to get rid of its non-core assets in Canada, though the company will retain royalty interests in the properties in Canada\u2019s Cobalt Camp.<\/p>\n\n\n\n
The decision is part of an agreement initially inked between the companies in 2021; that share purchase and option agreement has been amended for this newest transaction.<\/p>\n\n\n\n
Under the deal\u2019s terms, Kuya will acquire a 100% interest in the Ontario assets, and in return will be a cash-or-equivalent-shares payment of C$1 million before January 31.<\/p>\n\n\n\n
Kuya has also agreed to enter into a royalty agreement giving Electra a 2% royalty on net smelter returns from commercial production derived from the remaining assets. Electra will retain a right of first offer to refine any base metal concentrates produced from them.<\/p>\n\n\n\n
\u201cOur initial agreement with Kuya was designed to allow us to maximize shareholder value for our exploration assets in Ontario, given our primary focus on recommissioning North America\u2019s first cobalt sulfate refinery,\u201d Electra CEO Trent Mell said.<\/p><\/blockquote>\n\n\n\n
\u201cAccelerating the terms of the initial agreement with Kuya allows us to focus on advancing our strategy of developing an integrated battery materials complex that combines the production of cobalt, nickel, and manganese sulfates with the recycling of battery black mass.\u201d<\/p>\n\n\n\n
Electra is currently commissioning North America\u2019s only cobalt sulfate refinery, with a goal of onshoring the electric vehicle supply chain. Keys to its strategy are integrating black mass recycling and nickel sulfate production at Electra\u2019s refinery located north of Toronto, advancing Iron Creek, its cobalt-copper exploration-stage project in the Idaho Cobalt Belt, and expanding cobalt sulfate processing into B\u00e9cancour, Quebec. <\/p>\n\n\n\n