US STRATEGIC METALS ANNOUNCES THREE-WAY STRATEGIC PARTNERSHIP FOR DOMESTIC UNITED STATES DOWNSTREAM CRITICAL MINERALS PROCESSING
Rhea-AI Summary
US Strategic Metals (USSM) has announced a three-way strategic partnership with Glencore AG and Chilean Cobalt Corp. (OTCQB: COBA) to explore domestic US downstream processing of cobalt and copper intermediate products from C3's La Cobaltera project in Chile. This agreement builds upon a previous LOI between C3 and Glencore, aiming to establish an Americas-centric cobalt supply chain.
The partnership may include developing a dedicated processing line for La Cobaltera concentrate at USSM's integrated critical minerals processing site in Missouri. This collaboration is expected to strengthen US critical minerals supply chains and provide sustainable raw materials for the growing domestic lithium-ion battery manufacturing and high-performance metal alloy markets.
Positive
- Potential establishment of an Americas-centric cobalt supply chain
- Possible development of a dedicated processing line at USSM's Missouri site
- Strengthening of US critical minerals supply chains
- Alignment with US EXIM Bank's strategic project financing conditions
Negative
- Agreement subject to conditions precedent and standard termination rights
- No guarantee of successful implementation or financial benefits
News Market Reaction
On the day this news was published, COBA gained 22.70%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
On July 8, 2024, C3 announced an LOI with Glencore regarding an offtake agreement for cobalt and copper intermediate products, as well as a strategic partnership, for C3's La Cobaltera project in northern
Today's announcement adds a processing LOI with USSM that builds upon this, with a three-way strategic partnership (the "Agreement") exploring collaboration on domestic US processing solutions with the objective of establishing an
This Agreement works to satisfy USSM and C3's own conditions precedent regarding both parties' potential strategic project financing from US EXIM Bank.
This Agreement will be subject to conditions precedent and contain standard termination rights, which are typical for an agreement and project of this nature. All parties will include agreed Responsible Sourcing and Sustainability provisions.
This press release does not constitute an offer or sale of, or the solicitation of an offer to buy, securities of the Company nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About US Strategic Metals
USSM is a
The Project will produce cobalt, nickel, lithium and copper. Its flexible flow sheet will enable it to supply the associated metals, intermediate products and salts which are required for the clean energy transition and other US strategic needs.
USSM is focused on building a dynamic and sustainable business with an emphasis on applying leading environmental stewardship, social engagement, and corporate governance practices to its strategy.
Safe Harbor Statement
This news release contains statements that involve expectations, plans, or intentions (such as those relating to the Company's ability to enter into a definitive agreement with EXIM Bank for the debt financing as provided for in the LOI) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. These forward-looking statements can be identified by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan," and other similar expressions. Examples of forward-looking statements include, among others, statements the Company makes regarding its ability to enter into a definitive agreement with EXIM Bank for debt funding as provided for in the LOI, approval for special consideration under Qualification under Section 402 of EXIM Bank's 2019 reauthorization (P.L. 116-94), ability to establish "Proven" or "Probable" Reserves, as defined by the SEC under Industry Guide 7, through the completion of a Feasibility Study for the minerals that the Company seeks to produce and the inherent risks of mining exploration, development, and processing operations that may negatively impact the business. Consequently, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the Company. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
View original content to download multimedia:https://www.prnewswire.com/news-releases/us-strategic-metals-announces-three-way-strategic-partnership-for-domestic-united-states-downstream-critical-minerals-processing-302246690.html
SOURCE US Strategic Metals
FAQ
What is the purpose of the strategic partnership between US Strategic Metals, Glencore AG, and Chilean Cobalt Corp (COBA)?
How might this partnership affect US critical minerals supply chains?
What potential development is planned at USSM's Missouri site as part of this agreement with COBA?
How does this agreement relate to Chilean Cobalt Corp's (COBA) previous announcement on July 8, 2024?
