VANCOUVER, British Columbia, July 11, 2018 (GLOBE NEWSWIRE) -- Pacific Rim Cobalt Corp. (CSE:BOLT) (FRANKFURT:NXFE) (OTCQB:PCRCF) (the “Company” or “Pacific Rim Cobalt”) a resource company currently exploring the Cyclops Nickel-Cobalt Project ("Cyclops"), located proximal to the world’s largest cobalt market, is pleased to announce that it has entered into a non-binding Preliminary Offtake Agreement (the "Agreement") with Beijing Easpring Material Technology Co., Ltd. ("Easpring"). Easpring and the Company intend to formalize the terms of a definitive binding agreement (the “Definitive Agreement”) subject to further due diligence to be completed between the parties.
The Definitive Agreement is expected to grant Easpring the right to purchase nickel sulphate and cobalt sulphate (the “Products”) from the Company’s Cyclops project for an initial term of 5 years from the commencement of commercial production. Annual volume will be determined in the Definitive Agreement, and it is presently intended that the Company will not be limited in respect of third parties to which it may sell any amount of Product not committed to Easpring. Pricing is intended to be linked directly to LME and LMB quoted metal pricing for nickel and cobalt respectively, with sulphate premia to be agreed quarterly based on the prevailing market pricing. Specific pricing parameters will be determined with greater certainty in the Definitive Agreement.
In addition, the Agreement contemplates a Strategic Investment Option, providing Easpring a preferential opportunity to make an equity investment directly in Pacific Rim Cobalt, or invest at the project level in Cyclops or other nickel-cobalt assets acquired by the Company.
Jashon Guan, Purchasing Director of Easpring stated, “The demand for lithium ion batteries is growing rapidly due to the global shift to electric vehicle usage. Our partnership with Pacific Rim Cobalt is an important part of Beijing Easpring’s strategy.”
Ranjeet Sundher, President of Pacific Rim Cobalt commented “The signing of this agreement exemplifies the commitment of our company to China which we see as the future global centre for battery production. We are eager to fully explore the potential of the Cyclops project as well as other projects under review with Easpring.”
Founded in 2001 and based in Beijing, China, Easpring engages in the research, development, production and sale of energy materials. It offers lithium cobalt oxide, multi-element oxide, lithium manganese oxide, and other cathode materials for small lithium batteries and power batteries, as well as electronic ceramics materials. The company is a leading specialized supplier of cathode material for lithium-ion batteries to industry giants such as Samsung, Sony, Panasonic, SK Continental and BYD.
Today, Easpring is recognized as the leader in China in its industry and was one of the first Chinese suppliers to export lithium cathode material to multiple overseas markets. Presently, Easpring supplies five of the world's six largest lithium battery manufacturers, and is one of the only Chinese suppliers that simultaneously sells high quality cathode materials to China, Japan and Korea's high-end lithium ion battery markets.
Caution Regarding Cyclops Project Stage of Development
The Cyclops project is at an early stage of exploration. No resource estimate, Preliminary Economic Assessment (PEA), Pre-Feasibility Study (PFS) or Feasibility Study (FS) has been completed to demonstrate the technical feasibility and economic viability of the project at any level of confidence. Nickel/cobalt laterite projects can be extremely capital intensive often with very complex metallurgical issues requiring significant capital investment. The Company does not currently possess the financial resources to complete the study(ies) to establish the technical feasibility of economic viability of the project or initiate construction should the technical feasibility of economic viability of the project be supported by a PEA, PFS and/or FS. As a result the Company is not currently in a position to deliver the Products as expected pursuant to the initial terms of the Definitive Agreement without significant capital investment in the Company. Please refer to the risk factors set out in the Company’s CSE Form 2A Listing Statement dated October 19, 2017 and further details in respect of the Cyclops project in the Company’s current technical report dated December 8, 2017, each available at www.sedar.com.
Pacific Rim Cobalt Corporation:
Pacific Rim Cobalt Corp. is a Canadian publicly listed company currently focused on the development of cobalt projects within Indonesia. The Company believes cobalt will be the next dominant investment trend related to the critical components of lithium-ion batteries. Cobalt is currently in a global supply deficit, has a vulnerable supply chain, and is part of an emerging sector with extraordinary potential. For more information, visit: www.pacificrimcobalt.com.