- Pure Minerals (PM1) was up as much as 24.3 per cent today after entering a memorandum of understanding (MoU) with battery manufacturer Samsung SDI
- This MoU will see the Samsung spin-off purchase up to 6000 tonnes of contained nickel every year from the Townsville Energy Chemical Hub (TECH) Project
- As part of the MoU, both Pure Minerals and Samsung SDI have agreed to enter a binding offtake agreement to cover the nickel purchase
- The agreement’s initial term will last between three and five years, while the MoU will run for 12 months unless it’s extended by both parties
- Ultimately, the nickel pricing under the agreement will reflect the underlying commodity prices on the London Metals Exchange
- Pure Minerals is still up 24.3 per cent on the market with shares trading at 4.6 cents
Pure Minerals (PM1) was up as much as 24.3 per cent today after entering a memorandum of understanding (MoU) with battery manufacturer Samsung SDI.
This MoU will see the Samsung spin-off purchase up to 6000 tonnes of contained nickel per year from the Townsville Energy Chemical Hub (TECH) Project.
The TECH Project will process high-grade nickel-cobalt laterite ore imported from New Caledonia to produce battery chemicals for the electric vehicle sector.
In March, a pre-feasibility study revealed Pure can produce 26,400 tonnes of nickel sulphate per annum, 3100 tonnes of cobalt sulphate per annum, and 4000 tonnes of high-purity alumina (HPA) per annum.
As part of the MoU, both Pure Minerals and Samsung SDI have agreed to enter a binding offtake agreement to cover the nickel purchase.
The initial term of the offtake agreement will last between three and five years, and pricing will reflect the underlying commodity prices on the London Metals Exchange.
Additionally, the MoU will run for a 12-month period unless extended by mutual consent.
“We are delighted at the opportunity to work with Samsung SDI to become a potential customer of the TECH Project,” CEO Stephen Grocott said.
“We are consistently gaining traction with end-users who view Pure Minerals as a potential part of their future supply chain. This is evident in the MoUs we have signed to date with LG Chem and Samsung SDI,” he added.
Pure Minerals is still up 24.3 per cent with shares trading at 4.6 cents at 12:18 pm AEDT.