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Cobalt Blockchain and Traxys Announce Cobalt Hydroxide Plant Joint Venture, Cobalt Off-Take Agreement and US$30 Million Trade Finance Facility
Cobalt Blockchain and Traxys Announce Cobalt Hydroxide Plant Joint Venture, Cobalt Off-Tak...
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[{"type":"text","content":"\n\n\n\nCobalt Blockchain and Traxys Announce Cobalt Hydroxide Plant Joint Venture, Cobalt Off-Take Agreement and US$30 Million Trade Finance Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Aug. 7, 2018\n\n\n\nTORONTO, Aug. 7, 2018 /CNW/ - Cobalt Blockchain Inc. (\"COBC\" or the \"Company\") (TSXV:COBC) and Traxys Europe S.A. (\"Traxys\") are pleased to announce that they have signed a letter of intent (\"LOI\") on August 6, 2018 to establish a commercial partnership with respect to the Traxys-owned cobalt hydroxide plant (the \"Plant\") in Lubumbashi, Democratic Republic of the Congo (\"DRC\"). Highlights of the LOI include:\n\n\nA 10-year joint venture agreement with respect to leasing and operating the Plant (the \"JV/Lease Agreement\"); \nA US$30 million trade finance facility to be made available by Traxys to COBC (the \"Trade Facility\") with regard to certified, ethically-sourced cobalt concentrates traded by COBC; and\nA 10-year off-take agreement covering 100% of the cobalt concentrates produced by COBC at the Plant or purchased with the proceeds of the Trade Facility (the \"Off-Take Agreement\").\n\nJV/Lease Agreement for the Cobalt Hydroxide Plant\n\nThe Plant (Figure 1) consists of a process facility for conventional hydrometallurgical cobalt leaching, constructed in 2014 in Lubumbashi, DRC, including an office complex with an assay laboratory and staff housing for up to 20 people. Its product cobalt hydroxide is used in the preparation of other cobalt compounds, as a catalyst, and in the manufacture of battery electrodes.\n\n\n\n\n\nThe Plant is situated on an approximately 8-hectare parcel of land, located 5 kilometres from the Lubumbashi International Airport and Highway N1. The Plant is connected to the Société Nationale d'Électricité grid, and has a diesel backup generator.  The Plant has a design throughput of 50,000 tonnes per annum (tpa) of run of mine feed.  Expected output assuming a minimum feed grade of 3% Co is 3,150 tonnes of cobalt hydroxide, with 1,050 tpa of contained cob...