TORONTO, Dec. 30, 2021 /CNW/ - Electra Battery
Materials Corporation (TSXV: ELBM) (OTCQX: FTSSF) (the
"Company" or "Electra") today announced it has signed a five-year
cobalt tolling contract and amended the previous concluded
five-year cobalt hydroxide feed purchase agreement with
Glencore. The Company intends to produce a traceable, low
carbon battery grade cobalt product for the electric vehicle market
and the parties will market the Canadian-made cobalt sulfate as a
premium brand product that is sustainably mined and refined with
renewable hydroelectric power.
HIGHLIGHTS
- First production of battery grade cobalt sulfate is anticipated
in Q4 2022, with an annual production target of 5,000 tonnes of
cobalt, subsequently increasing to nameplate capacity of 6,500 per
year
- Glencore will have an option to toll approximately 1,000 tonnes
of contained cobalt at Electra's refinery and Electra will have an
option to purchase an additional undisclosed quantity of cobalt
hydroxide feed material from Glencore, each on an annual basis for
a five-year term for refining at Electra's Canadian refinery. The
feed purchase agreement largely reflects the original cobalt
hydroxide purchase agreement and is for the remaining quantities
from the original contract that are not part of the tolling
arrangement
- A third-party life cycle assessment supports the view that
Electra's refinery will have the lowest carbon footprint in the
global automotive supply chain, resulting in the world's most
sustainable cobalt for the electric vehicle market
- As part of its commitment to sustainable production, Electra
intends to join the Fair Cobalt Alliance and adopt the Cobalt
Institute's Cobalt Industry Responsible Assessment Framework
- To date, Electra has concluded feed supply contracts with
Glencore and IXM SA for a total for 4,500 tonnes of contained
cobalt per year for a five-year term
"Today's announcement is a validation of our strategy by the
world's largest cobalt miner," said Trent Mell, CEO. "We are very pleased to
partner with Glencore as a means to establish our cobalt sulfate
product as a premium brand in the EV market due to its traceability
and low carbon footprint."
Glencore will use its extensive network to market Electra's
premium cobalt sulfate globally. Electra's cobalt feedstock is
sourced only from the world's highest quality cobalt mines and the
Refinery has strong ESG credentials compared to its peers. Both
Glencore and Electra expect the battery-grade cobalt sulfate
produced at the Canadian refinery to command a premium above normal
market prices. The collaborative approach will help to properly
position Electra's cobalt sulfate in the market.
The Company previously concluded a five-year cobalt hydroxide
feed purchase agreement with Glencore, which has been amended to
reflect the terms of the deal announced today. The tolling
agreement will provide Glencore with the option to toll
approximately 1,000 tonnes of contained cobalt through the Refinery
on an annual basis. The parties have agreed to a tolling fee
for the duration of the contract. Feed material will be provided
from Glencore's KCC mining operation. If exercised each year, the
quantity of cobalt tolled with Glencore will represent 20% of the
initial 5,000 tonnes per annum (tpa) production of the refinery,
and 15% of the expanded 6,500 tpa production rate.
The feed purchase agreement largely reflects the original cobalt
hydroxide purchase agreement and is for the remaining quantities
from the original contract that are not part of the tolling
arrangement. The purchase price for this cobalt hydroxide
will continue to be linked to the prevailing market price of cobalt
hydroxide. All quantities under this cobalt hydroxide
purchase agreement will now be at the sole option of Electra
annually, giving the Company enhanced flexibility to manage its
feed sources. All conditions precedent included in the original
contract have been removed.
Glencore has been a strong supporter of Electra for a number of
years, funding the initial engineering studies on the refinery and
providing technical input to the Company. Electra is pleased to
continue working with Glencore as the refinery comes online in Q4
2022. The commercial contracts noted above are the only existing
corporate relationships with Glencore at present, as Glencore does
not hold any debt or common shares of Electra and thus does not
have an ownership interest in the Company.
Approval of 2021 Long-Term Incentive Plan
On December 2, 2021, at the
Company's annual general and special meeting of shareholders (the
"Meeting"), disinterested shareholders of the Company approved
amendments to the Company's long-term incentive plan (the "2021
LTIP"). The 2021 LTIP increases the number of Options, PSUs,
RSUs and DSUs from 18,000,000 Options to 25,500,000 Options; from
4,000,000 PSUs to 5,000,000 PSUs; from 2,000,000 RSUs to 4,500,000
RSUs; and from 4,000,000 DSUs to 7,000,000 DSUs, such that the
maximum number of Common Shares to be reserved for issuance under
the 2021 LTIP be increased from 28,000,000 Common Shares to
42,000,000 Common Shares. This represents approximately 7.9% of the
current issued and outstanding Common Shares, with the increase in
total Common Shares reserved for issuance driven by the increase in
the Company's employee base as it has grown into a development
stage.
The 2021 LTIP also clarifies termination and blackout provisions
to better align with the requirements of the TSXV. The 2021
LTIP remains subject to the TSXV's final approval. Further
information on the 2021 LTIP, including a copy thereof, can be
found in the Company's management information circular prepared in
connection with the Meeting and available on SEDAR at
www.sedar.com.
About Electra Battery Materials
Electra is building North
America's only fully integrated, localized and
environmentally sustainable battery materials park. Leveraging the
Company's own mining assets and business partners, the Electra
Battery Materials Park will host cobalt and nickel sulfate
production plants, a large-scale lithium-ion battery recycling
facility, and battery precursor materials production, which will
serve both North American and global customers. Electra also owns
the advanced exploration-stage Iron Creek cobalt-copper project in
Idaho, USA. Electra Battery
Materials is an integral part of the North American battery supply
chain, providing low-carbon, sustainable and traceable raw
materials for the region's fast growing electric vehicle
industry.
On behalf of Electra Battery Materials Corporation.
Trent Mell
Chief Executive Officer
For more information visit www.electraBMC.com
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Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for the Company, filed on SEDAR at
www.sedar.com. Although the Company believes that the information
and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, the Company disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE Electra Battery Materials Corporation