- Clean TeQ is inching closer to a seat as global suppliers in cobalt, nickel and scandium after announcing a funding partnership with Macquarie Capital for its Sunrise Battery Materials Complex project in NSW
- The project is slated for a 40-year mine life, producing high grade and high tonnage of the elements vital to creating lithium-ion batteries, a key player in a renewable energy future
- The project has not begun production yet, but is expected to be one of the largest producers of high grade nickel and cobalt outside of Africa and one of the largest in the world for scandium
Melbourne-based metal recovery company Clean TeQ boosted 17.3 per cent in the share market today after announcing a funding partnership for a cobalt project.
The company will be undergoing a partnership with Macquarie Capital for funding of 50 per cent interest in the company’s Sunrise Battery Materials Complex alongside a long-term offtake agreement and planned debt facility.
Clean TeQ CEO Sam Riggall says Macquarie Capital is “the right partner” for funding the upcoming globally significant mine site.
“With approximately A$150 million invested by Clean TeQ in the project to date, a solid foundation has been built for the successful and rapid delivery of this project,” Sam said.
The Sunrise project located in NSW is a globally significant resource rich in nickel, cobalt and scandium. Company management currently estimates a whopping 40-year mine life to the project.
The project is not in production yet but is expected to be one of the largest producers of high-grade nickel and cobalt outside of Africa and one of the largest for high-grade scandium in the world.
A definitive feasibility study last year in June concluded an annual production of 19,620 tonnes of nickel and 4420 tonnes of cobalt over the first 10 years.
High purity nickel sulphate and cobalt sulphate are key materials in the production of lithium-ion batteries, vital to a renewable energy future and powering renewable energy projects and automobiles.
“Sunrise is uniquely positioned to benefit from several macroeconomic themes including the electrification of transport driving cobalt and nickel demand, a global shortage of Class 1 nickel sulphide deposits and increasing customer requirements for auditable, sustainable supply chains,” he said.
Clean TeQ plans to conclude the partnering process for Sunrise in the second half of this year, with construction to commence shortly afterwards.
Shares in CLQ are trading at a 17.3 per cent premium today, priced at 32.3 cents a piece compared to last week’s closing price of 27.50 cents. The company’s market cap currently sits at $205.2 million.